Issue 41: Summer 2010 uk:newsletter inspiring giving

A quarterly e-letter for all those interested Can marketing activate in the development of philanthropy philanthropy… Promoting philanthropy Your role in growing giving My philanthropic journey A philanthropist in the making Letter from America US Giving Pledge poses $600bn question Influential reader Dr Astrid Bonfield shares her inspirational books Impact investing A news round-up from the world of …or is it a badge too far? social investment Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving welcome welcome

You may have noticed a small but important change to Philanthropy UK has thrived. We wish David well and Dr Beth Breeze reviews Nicola Elkins book How to our ‘newsletter’ – it has a new name and going forward offer a public ‘thank-you’ for all he has given to maximise your strategic giving, along with notices of will be known as the Philanthropy UK Quarterly. The Philanthropy UK. recent philanthropy focussed publications, while Dr Astrid new title reflects the development the publication has Bonfield, of The Diana, Princess of Wales Memorial Fund In this edition, we take an in-depth look at ‘promoting undergone since its launch in 2001. While adhering to the shares the reading that has influenced her thinking. philanthropy’, timely considering the recent launch of original principles set out by Philanthropy UK founder ‘’ in the US by philanthropy leaders And in My Philanthropic Journey entrepreneur and Theresa Lloyd, who continues to be a driving force, the and , in which they ask fellow ‘apprentice’ philanthropist Brian Fenwick-Smith reflects publication has grown in stature to offer in-depth features to pledge to give away 50% of their . on his giving journey inspired by a passion for education. on issues that affect the sector, along with a wealth of They lead by example and aim to use their influence to thoughtful articles from contributors. It has almost We hope you enjoy this edition of the Philanthropy UK activate and empower philanthropists. Melissa Berman, doubled subscribers in the last year and is now read in Quarterly and welcome feedback on the issues covered. president of Rockefeller Philanthropy Advisors, offers more than 70 countries. We hope the ‘Quarterly’ title will thoughts on the implications of the pledge in building a Best wishes, also help differentiate this publication from our powerful peer-to-peer philanthropy network in her Letter fortnightly News Bulletin, which covers current affairs in from America. UK philanthropy. We also feature the campaign in a series of articles that Much of the credit for the development of Philanthropy explore the role marketing and donors might play in UK, a project of the Association of Charitable promoting and activating philanthropy with views from Foundations, is due to our editorial board and Cheryl Chapman practitioners and experts. As a diversion and a discussion particularly its chairman, independent consultant David Managing Editor point we include an idea for a campaign to promote Carrington, who was instrumental in bringing together a philanthropy and activate philanthropists using social consortium of organisations to develop and foster a marketing strategies. network for those interested in exploring and promoting Email: [email protected] new ideas about philanthropy in 2004. David is standing Writing in the EuroView column Dr Marta Rey, non- down after six years at the helm of the editorial board to management and marketing specialist based at pursue an interesting semi-retirement plan. David’s University of A Coruña, Spain, focuses on how endless generosity, deep knowledge, broad experience and relationship marketing can help map ‘the archipelago’ of vision have been the lynchpins around which foundations to better understand the ecosystem of which they are a part. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving contents

My philanthropic journey

39 The apprentice: a philanthropist in the making in this issue by Brian Fenwick-Smith A broader view

41 Letter from America: US Giving Pledge poses Promoting philanthropyby Cheryl Chapman $600bn question Managing Editor Editorial Board by Melissa A. Berman, president & CEO, Rockefeller Cheryl Chapman Beth Breeze (Publications Editor) Philanthropy Advisors David Carrington (Chair) 5 Could the wealthy give more? David Emerson 8 Why the wealthy give and why they don’t 43 EuroView: What does philanthropy need Sue Wixley marketing for? The purpose of the Newsletter is to disseminate information about new 12 Promoting philanthropy – the role of the state by Marta Rey, assistant professor of the School of developments in philanthropy. To submit an article for consideration, please contact the Editor at [email protected]. 15 Promoting philanthropy – the role of the donor Economics and of the University of A The secretariat for the Newsletter is being provided by ACF. To subscribe Coruña, Spain, and director of the Institute for 19 Promoting philanthropy – the role of free of charge, please complete the subscription form on our website. Strategic Analysis of Foundations (INAEF) innovation The content of this Newsletter is the copyright of the Association of Charitable Foundations (ACF). 21 Promoting philanthropy – the role of Philanthropy UK c/o ACF, Central House, Impact investing marketing 14 Upper Woburn Place, London, WC1H 0AE, United Kingdom +44 (0)207 255 4490; www.philanthropyuk.org 24 What is a philanthropist? 46 A brief round-up of developments from the social Design & Artwork by Carrington Griffin Design 26 Promoting philanthropy – the application of investment world technology by Adam Ognall, deputy chief executive, UKSIF Philanthropy UK aims to inspire new giving by providing free and impartial 28 Promoting philanthropy – the role of advisors advice to aspiring philanthropists who want to give effectively. An initiative of the Publication reviews and notices Association of Charitable Foundations, we also publish A Guide to Giving, the 31 Case study – Designing philanthropy essential handbook for philanthropists. www.philanthropyuk.org 47 Book review 33 Case study – Remember A , normalising Master Your Philanthropy: How to maximize your legacy giving strategic giving by Nicola Elkins reviewed by Beth 35 Conclusion: Can marketing activate Breeze philanthropy? 49 Influential reading by Dr Astrid Bonfield, chief executive of The Diana, Princess of Wales Memorial Fund Philanthropy UK is supported by the Office for Civil Society in the Cabinet Office 51 Notices Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 4

Promoting philanthropy

by Cheryl Chapman We begin by asking ‘could the wealthy give more?’ and Articles present the barriers and motivations for giving. In this edition of the Philanthropy UK 1. Could the wealthy give more? We outline the work already undertaken by government 2. Why the wealthy give and why they don’t Quarterly we explore what can be done to to support more philanthropy and what the new coalition promote philanthropy and the role government might do. Donors and advisors have a key 3. Promoting philanthropy – the role of the state role to play in the promotion of philanthropy; we explore 4. Promoting philanthropy – the role of the donor marketing can play within that. how they can be enabled to fulfil that potential. 5. Promoting philanthropy – the role of innovation Philanthropy is undergoing a transformation driven by business-minded philanthropists and we look at how 6. Promoting philanthropy – the role of marketing innovation and the repackaging of philanthropy is 7. What is a philanthropist? engaging new donors. We then turn our attention to the role marketing might play in promoting philanthropy and 8. Promoting philanthropy – the application of technology changing giving behaviour. Before marketers can address 9. Promoting philanthropy – the role of advisors an issue they need to know who they are talking to. But what is a ‘philanthropist’? Technology is disrupting 10. Case study – Designing philanthropy marketing and in this issue we present some fascinating 11. Case study – Remember A Charity, normalising and controversial high tech tools being created to legacy giving encourage and support philanthropy and client advisors. We also show how marketing is being employed to change 12. Conclusion: Can marketing activate philanthropy? giving behaviour with a case study around normalising legacy giving. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 5

Philanthropy leaders Warren Buffett and Bill and Melinda Gates launch ‘The Giving Pledge’, that calls on fellow philanthropists to make a commitment to give away 50% of their wealth.

Could the wealthy give more?

Theresa Lloyd, independent philanthropy “As we consider the impact of the financial situation and But the real potential of the pledge is that it might advisor and author of Why Rich People the move to the ‘Big Society’, it is appropriate to ask encourage everybody to give more, says Sean Stannard- whether the rich should and could be encouraged to give Stockton in his Tactical Philanthropy blog Give, is one of a passionate few bold more in proportion to their wealth – at least in due course (www.tacticalphilanthropy.com/blog). to the level of 3% of annual income given by the poorer enough to pose the ‘disruptive’ question “The Giving Pledge might result in a 10% increase in members of UK society,” says Lloyd. ‘Could the wealthy give more?’ charitable giving, but it is important because of its In the US Microsoft founder Bill Gates and potential to trigger a 100% increase in charitable giving,” Warren Buffett have tackled the issue head on, asking he says. billionaires to pledge to give away 50% of their fortunes in While the pledge suggests that the world’s most an effort to draw attention to the responsibilities the influential philanthropists feel their peers could do more, wealthiest have for aiding the needy. (See US Giving most of the wealthy do already give. Charitable activity is Pledge poses $600bn question). near universal among the wealthy, with 97% giving in ‘The Giving Pledge’, as the drive is called, has a minimum some form, according to recent research 1 goal of about $600bn (£407 bn) in commitments, based on , based on a the calculation of half of the $1.2 trillion (£0.8 trillion) insurvey of 500 UK and US high net worth individuals net worth of the 400 richest individuals compiled by (HNWI), including 150 with investable assets of over £3m. Forbes magazine. However, despite widespread involvement, only a third Charities Aid Foundation (CAF) estimates a £60bn figurewill donate more than £10,000 a year – less than 1% of for the UK if all its billionaires took up the pledge, basedtheir net worth, says the research. on The figures. “It is a disappointment and a challenge to those of us who wish to encourage a stronger culture of philanthropy to see that in spite of the sometimes very significant levels of wealth only one-third are donating more than £10,000 a year,” says Lloyd in response to the findings. 1Barriers to giving, Barclays Wealth and Ledbury Research, March 2010 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 6

“It is a disappointment and a Canadian entrepreneur and philanthropist Aditya Jha challenge to those of us who wish also comments in the Barclays Wealth survey on the need The 2009 Sunday Times Giving List reveals the top 30 for the wealthy to give more. “The world needs more UK donors collectively pledged more in 2009 than in to encourage a stronger culture of support and governments will not be in a position to 2007, £2.6bn compared with £1.2bn. This year’s list philanthropy to see that in spite provide it. Private individuals have more wealth than showed an 11.5% drop in giving – aligning with the CAF’s before but they are not doing enough to give it back.” of the sometimes very significant levels figures for all givers – but it is set against a 37% drop in Of course, the recession is a major factor and has hit wealth of the top 1000 Rich Listers – “this provides of wealth only one-third are giving at all levels of wealth. important context” says Giving List editor Alastair McCall. “The conversations I am having with wealthy CAF’s latest annual survey of giving, UK Giving 2009 donating more than £10,000 a year.” 2, donors indicate they are committed to continue giving found an 11% drop in the of all donations and the particularly in the recession and feel a social responsibility Coutts Million Pound Donors research 3 records a 13% to help now need is greatest.” drop in the value of gifts worth £1m plus. The newly published World Wealth Report 2010 from But the effect of the recession on giving is not straight- Merrill Lynch-Capgemini (www.us.capgemini.com), based forward. Research reveals the performance of the economy on surveys with more than 1,100 wealthy , is both a barrier and a driver to giving among HNWIs. reveals philanthropy by the world's rich recovered in 2009 in all regions but North America after undergoing a sharp The Barclays Wealth study for example shows that drop the previous year due to the global financial crisis. although 23% of the wealthy decreased their donations in 2009, with many giving time instead of (20%), 49% A further indication that levels of giving remain resilient said they were planning to give the same amount as last and may even be rallying is CAF’s reported 250% rise in year and 36% were planning to increase donations. The the value of donations to Charitable Trust Accounts research found evidence that the economic downturn had compared to last year. galvanised many; 35% of the wealthy are “more In the first quarter of 2010 CAF, one of the UK’s biggest passionate in supporting charitable causes in an economic providers of charitable trusts, opened 51 new Charitable downturn, when they are struggling for funds,” it says. Trust Accounts with a total of £70m in donations, A recent report compared to £20m for the same period last year. The 4 from The Economist substantiates this - charity is now opening as many accounts each month as it most very wealthy individuals intend to maintain or was in early 2008 before the recession began. increase their level of donations, it says. In some cases And as we regularly report in our Philanthropy UK News this is because they have set up foundations, the output of Bulletins, numerous philanthropists continue to give which is not dependent on economic cycles. millions of pounds to good causes, such as Kwik Save

2 UK Giving 2009, Charities Aid Foundation 3 The Coutts Million Pound Donors Report 2009, Dr Beth Breeze in association with the Centre for Philanthropy, Humanitarianism and Social Justice at the University of Kent. 4 The new world of wealth: Seven key trends for investing, spending and giving among the very rich, a report from the Economist Intelligence Unit, http://graphics.eiu.com/upload/eb/The_New_World_of_Wealth_WEB.pdf Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 7

Chart 1: Donor levels compared with wealth levels 40% of those with investable assets between £500,000 – £1m will give less than £1,000. It is only when individuals have more than £3m to their name that they are likely to become major cash donors - giving over £10,000 a year, according to research from Ledbury Centre for Barclays Wealth. Chart courtesy of Barclays Wealth

supermarket founder Albert Gubay, who this year Philanthropists too have said the wealthy could do more bequeathed £800m in a ‘deal with God’. Gates and Buffett are clearly in agreement and have put and suggest the recession may be a smokescreen for their considerable weight behind the push to encourage But that said, the wealthy give a much smaller proportion giving less. Rohini Nilekani, one of the most prominent wealthy Americans to give more with their ‘Giving Pledge’ of their income than lower income donors and levels of philanthropists in India, has been reported as saying idea. Might it encourage more of the ultra wealthy to give? individual giving as a proportion (%) of Gross Domestic there is no justification for a decrease in donations, Product (GDP) are tiny with the UK comparing poorly despite the financial crisis. “Given that most At the very least it focuses the spotlight on the question with other nations. philanthropists in India are giving away only a tiny ‘could the wealthy give more?’ and further, ‘what can be fraction of their wealth, I see no reason for a slowdown in done to help them?’ In its 2006 International comparisons of charitable giving 5, philanthropy,” she says. In the following articles we look at the barriers to and CAF reviewed and compared the results of surveys of Despite their own pledges to maintain donation levels, motivations for giving and the roles government, donors, individual giving in a number of countries whose wealth many of the very wealthy questioned for the Barclays marketers and media can play in promoting more giving, covers over half of the total global economy. while offering examples of where this is already happening. Wealth report6 believe that much more needs to be done The results show the amount individuals give to charity to encourage private philanthropy, especially since varies from 0.14% of GDP in France to 1.7% in the US, governments around the world may be unable or while the UK records the second highest percentage at unwilling to play such a large role in the future. “As a 0.73%, not including legacies and trusts or any tax-recovery. society, we need to think about what we need to do to It concludes that the UK could set itself a higher target motivate private individuals to give more,” says Jha. for giving. “I think this problem has been there before the crisis and now the need is much greater for people to give.”

5International comparisons of charitable giving, November 2006, CAF, Sally Clegg and Cathy Pharoah http://www.cafonline.org/pdf/International%20%20%Giving%20highlights.pdf 6Tomorrow’s Philanthropist, Barclays Wealth and Ledbury Research, July 2009 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 8

Why the wealthy give and why they don’t

Why do wealthy people give and what is Barclays Wealth recently explored the barriers and shows. The Barclays Wealth findings precisely echo those it that stops them? Much research has motivations to giving in a white paper, based on the of Why Rich People Give (WRPG) by independent Tomorrow’s Philanthropist survey as discussed in the philanthropy advisor Theresa Lloyd, which showed that been done to discover the motivations opening article. religion, family tradition and values and a sense of community are the key drivers. and barriers to giving, and it reveals Emma Turner, head of client philanthropy at Barclays these decisions are not entirely rational. Wealth, commenting on the research, says, “High net Lloyd says7, “Once people have engaged on the worth individuals today are a very diverse community of philanthropic journey, then other factors kick in. In people, having accrued their wealth through a huge particular the sense of personal fulfilment that reinforces variety of different sources, from technology to .the practice of giving becomes a primary incentive for However, the findings of this report show that despite theserecurring commitment and involvement. This personal differences they are predominantly motivated by values fulfilment may come from knowing one has made a real which are deeply rooted and traditional in nature, like difference (because one can see the impact of the family and religion. As charities seek to understand how philanthropic investment), learning about other areas of they can work more closely with this complex group, it is activity (whether in social welfare, the arts, health crucial that they understand what is stopping them from services, higher education) and meeting like-minded and giving, as much as they focus on what is motivating them sometimes inspirational people – whether the professional to give.” staff and volunteers who deliver the mission of the The report lists 20 motivators for giving (see Chart 2) organisation receiving the money, other donors or, in some with ‘being able to afford to give’ at the top. cases, the beneficiaries.” The level of giving is directly related to religious beliefs, The Barclays Wealth research shows two key barriers to familial duty and a sense of social responsibility research giving are feelings of financial insecurity and a lack of duty to society, family or religious beliefs.

7Could the rich give more?, Theresa Lloyd, http://www.theresalloyd.co.uk Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 9

Chart 2: Most popular motivations for giving The starting point in uncovering some of the inhibitors towards philanthropy is to understand the main reasons the wealthy donate. This chart from Barclays Wealth ‘Barriers to Giving’ research shows the most popular motivators cited by the wealthy. Chart courtesy of Barclays Wealth Lloyd says, “The question of ‘how much people feel they can ‘afford’?’ is crucial. My own research also touched on this issue. In WRPG we saw that feelings of financial security were unrelated to levels of wealth. Indeed most interviewees recognised that their attitudes to money and financial security were tied up with emotion, family history and personal insecurities, and not related to a rational analysis of their current and future needs. This is echoed in US research. And as the Ledbury Research paper points out, feeling that ‘I can afford to give’ was the most frequently cited reason for giving (mentioned by 50% of HNWI interviewees). This was closely followed by motivators related to giving back to society, personal fulfilment and social beliefs.” Financial security among the wealthy has been shaken by considerable declines in wealth. The Economist’s New World of Wealth 8 report says that by one estimate, the global population of ultra high net worth individuals fell by nearly a quarter from 2008 to 2009 and their wealth shrank by 24%. “Most of the very wealthy are feeling completely at sea right now,” says an American ultra high net worth individual interviewed for the report. Martin Brookes, of non-profit think tank New Philanthropy , quoted in the Barclays Wealth report, says, “Many feel it can be a bit premature to give

8The New World of Wealth, Seven key trends for investing, giving and spending among the very rich, The Economist Intelligence Unit. http://graphics.eiu.com/upoad/eb/The_New_World_of_Wealth_WEB.pdf Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 10

writers– while the wealthy may care deeply about “Indeed most interviewees recognised supporting effective charities over mediocre ones, they don’t necessarily have the appetite for research that could help that their attitudes to money and them sort the good from the bad, says The Chronicle of financial security were tied up with Philanthropy reporting on the survey. emotion, family history and personal Based on a poll of 4,000 people and on interviews with away large amounts of money if they don’t know exactly donors with incomes over $80,000, to determine how to insecurities, and not related to a how much money they need or they’ve actually got.” encourage charitable giving and channel more money to rational analysis of their current and The recession has engendered new feelings of financial effective non-profit groups, they found that few people future needs.” insecurity and is focusing donors’ sights on the investigate the performance of non-profit organisations. measurables of giving. Impact reporting has moved even While 85% said that a charity’s performance is very further up the agenda. important, only 35% conducted research on giving and just 2% gave based on a group’s relative performance. “The very wealthy want to understand more than ever where their money is going,” says Jason Sumner, senior “There’s not a lot of demand for a very complicated scoring editor at The Economist Intelligence Unit. The downturn system,” said Greg Ulrich, one of the study’s researchers. has made them more sceptical, ask more questions and in “We need to meet people where they are.” some cases take a more direct, hands-on role he says. Fundraisers and organisations that provide donors with Hand in hand with insecurity is a distrust of charitable information on charities ought to provide relatively simple organisations. The majority of the wealthy (53%) believe information in the areas people care about, including how that charities are inefficient in managing donations, their gift will be spent, says Ulrich. according to The Economist report. While clearer, more simple communication could help Efficiency too is a factor in giving, particularly in choosing attract and engage donors, more of the same who to give to. The Barclays Wealth report shows that communication will not. Most donors surveyed in The once the wealthy have decided on a general cause, Economist report said that they were satisfied with their efficiency and the amount spent on administration are charitable giving, with one exception being how ranked as two of the most important factors when frequently they were asked for money. selecting an individual charity (89% and 88% respectively). Lloyd believes recipient organisation have much to However, a just released report from San Francisco based improve in the way they manage their relationships with Hope Consulting significant prospects and major donors. 9 reveals a surprising insight for report

9Money for Good, The US Market for Impact Investments and Charitable Gifts from Individuals Donors and Investors. http://www.hopeconsulting.us/pdf/Money%20for%20Good_Final.pdf Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 11

“While there are honourable exceptions there are far too many organisations whose management of significant prospects and really major donors is inadequate – undertaken by inexperienced and junior staff, with no engagement by trustees or senior staff outside the fundraising team. They often do not provide clear and transparent information on the impact of philanthropic investment. They mostly do not ask for and respect the expertise that is the source of the wealth. They tend to have clumsy bureaucratic procedures. They rarely thank people promptly or address them appropriately. They do not ask donors how they would like feedback, or provide opportunities for the donors to learn more about the work. They do not explain the business model, or the importance of core costs, and then grumble when donors want their funding to go only to projects. “They are not willing to invest in creating and nurturing potentially major long term relationships. They do not make it easy and enjoyable for donors to bring in other Chart 3: Motivators’ importance in driving high-giving levels potential supporters. And, crucially, they misjudge why the Giving to charity is an emotive matter, driven by a wide range of internal values and beliefs. To uncover prospect might support them, and what they should ask what the most important of these are, research undertaken for Barclays Wealth analysed how the key for, because they have not done their research. In other motivators related to the amount of money the wealthy donated each year. words the experience of giving is neither as fulfilling nor Chart courtesy of Barclays Wealth as much fun as it could and should be.” Motivators and barriers are a mix of deeply held beliefs and more pragmatic factors. While donor behaviour is a complex area, evidence suggests greater understanding of donors’ needs along with more sensitive stewardship could overcome many of the obstacles that hamper more giving. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 12

Culture secretary Jeremy Hunt says, “Philanthropy is central to our vision of a thriving cultural sector.”

The role of the state

Government and philanthropy share a The last government has worked to overcome the barriers Philanthropy specifically gets a mention in the Coalition difficult relationship. The state has a role to giving and tap into the motivations for it through Agreement, with government saying it will ‘take a range of regulation of non-profits, tax incentive policies including measures to encourage charitable giving and to play in incentivising giving and has Gift Aid and by setting up new organisations and philanthropy’. The agreement also talks of the need to used its powers to do so. Yet strategic partnerships such as Philanthropy UK to promote excellence in media sports and culture ‘with promote more effective giving. It has funded research government funding used where appropriate to encourage philanthropy’s role as a challenger to initiatives and made awards such as The Beacon Awards philanthropic and corporate investment.’ to encourage individuals to donate time and money. government policy is jealously protected. New Civil Society minister Nick Hurd said before the Gordon Brown demonstrated a personal commitment to election that he wants to create new ‘social norms’ around How will the relationship develop under philanthropic giving with the appointment of Dame higher levels of giving, both of time and money. the new government? Stephanie Shirley as the ambassador for philanthropy – an idea now gaining traction around the globe. “There is much more we can do to connect local wealth Philanthropy UK documented these developments in its generators with the opportunity to help their local 2009 September newsletter article ‘Legislating for community. We need to encourage more role models from Philanthropy’. different walks of life to inspire and motivate others to follow their lead,” he said. At the time of writing, the new coalition government had yet to reveal the detail of how it intends to promote With swingeing government cuts on the way, new culture philanthropy, and indeed how much money will be secretary Jeremy Hunt has already called on available to do so, but it has already acknowledged that philanthropists to support the arts. philanthropists will have a key role to play in its ‘Big Hunt gratefully received Charles Saatchi’s recent £25m Society’ concept. gift to the nation – ‘a living museum’ of art – on behalf of the government.

“If you want to succeed you should strike out on new paths, rather than travel the worn paths of accepted success.” John D Rockefeller, philanthropist and founder of the Standard Oil , 1839-1937 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 13

“There is much more we can do to connect local wealth generators with the opportunity to help their local community. We need to encourage more role models from different walks of life to inspire and motivate others to follow their lead,”

“Charles Saatchi has built up a collection of huge international importance. His decision to gift these works How effective tax reliefs are in encouraging giving is still to the nation is an act of incredible generosity and I'd like an unknown. “The UK and US, where there are high to thank him on behalf of the government,” adding an giving levels, have the most generous tax regimes but there is as yet no international research comparing the precise important footnote on the role of philanthropy in the lean 11. times ahead, “Philanthropy is central to our vision of a effects of different tax reliefs on levels of giving,” says CAF thriving cultural sector and this is an outstanding Hurd too is unconvinced that tax relief is a trigger to example of how Britain can benefit from individual acts moreof giving. He said in a December 2009 Philanthropy social responsibility,”he said. UK article, “I am not sure that tax is a big driver, although we have said that we will look at reforming Gift Aid to Research also shows the wealthy are expecting to be make it more efficient, and also tax breaks to stimulate asked to play a bigger role. A Barclays Wealth study10 social investment in the most deprived areas.” says 49% of the wealthy believe that since governmentsBarack Obama in explaining his plans to cap the size of around the world have borrowed large amounts of money,tax breaks available for the highest earners, made clear they have less capacity to give, and charities will becomehis feelings on the relation between incentives and giving. more reliant on wealthy individuals. Encouragingly for New Civil Society minister Nick Hurd the future of the third sector, this attitude is more “Now, if it's really a charitable contribution, I'm assuming said before the election that he wanted to prevalent with age. Some 72% of those under 35 believethat that shouldn't be the determining factor as to whether create new ‘socials norms’ around higher you're giving that $100 to the homeless shelter down the levels of giving, both of time and money. the government will become more reliant on them, the next generation of the wealthy. street,” he said. “The recession will potentially increase the role of the However the World Wealth Report 2010 12 documents a wealthy philanthropist on a broad basis, as governments growing trend for ‘giving while living’ and says as a result around the world become more constrained in the causes there is greater emphasis on incorporating giving they can fund. High net worth givers will become an strategies into donors ongoing wealth accumulation and invaluable source of innovation and investment for capital-preservation plans, which may lead to more charities,” the report says. interest in tax incentives.

10Tomorrow’s Philanthropist, Barclays Wealth and Ledbury Research, July 2009 11International comparisons of charitable giving, November 2006, CAF, Sally Clegg and Cathy Pharoah http://www.cafonline.org/pdf/International%20%20Giving%20highlights.pdf Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 14

In the Barclays Wealth13 report, 52% of those surveyed work in government, its large size and bureaucratic said that the most effective way for the state to increase structure. One of her interviewees sums up their feeling donations would be to increase tax breaks to offset succinctly, "If I wanted to live that way [i.e. pay tax charitable giving. However, it also says many believe the instead of make donations]. I'd move to Sweden”. state’s role should be restricted and that it should avoid The state’s role in philanthropy remains important, but intervening in philanthropic activities. Some of this is relationships between donors and the state are complex based on a lack of trust in the political process, with 59% and to some degree the evidence for the impact of various of the wealthy agreeing that this distrust ‘has prompted pro-philanthropy initiatives is, as yet, unclear. them to give directly to charities’, where they feel their money can make a bigger impact rather than indirectly through taxation. Francie Ostrower, in her book Why the Wealthy Give, explores this point, ‘Distrust and scepticism toward government are integral components of [a wealthy donors] position'. She finds that wealthy people prefer to donate than pay tax because they distrust government to spend their money well, due to the 'politicised nature of decision making in government', the low calibre of people who

12World Wealth Report 2010, Merrill Lynch-Capgemini 13Tomorrow’s Philanthropist, Barclays Wealth and Ledbury Research, July 2009 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 15

Philanthropists Eli and Edith Broad are among the first billionaires to sign up to ‘The Giving Pledge’ led by Bill Gates and Warren Buffett.

The role of the donor

If philanthropy is to be promoted it needs In a recent BBC News at Ten interview on how “Sometimes donors feel they can’t ‘win’; if they allow their to come out of the closet – yet it remains philanthropy might be promoted, film producer and name to be publicised they are berated for seeking publicity politician David Puttnam perhaps spoke on behalf of and acclaim, and of course if they give anonymously they a taboo topic. Research reveals a move many philanthropists when he referred to the largely US may be thought to be mean.” practice of naming as ‘tacky’. towards more active philanthropy; donors But if philanthropy is to be promoted it needs to come out want to have more of a voice in their British philanthropists are more shy than their American of the closet and many believe philanthropists have a role counterparts. They tend not to feel comfortable having to play in making that happen. giving, yet organisations they support are their name emblazoned on the projects they fund, as is Philanthropists Warren Buffett and Bill Gates have done the norm in American philanthropy. Art collector Charles failing to allow them. Here we explore much towards more ‘open philanthropy’, making high Saatchi in donating his £25m art collection and profile, billion dollar donations, and now the launch of how philanthropists can be empowered to eponymous London gallery to the nation has perhaps ‘The 'Giving Pledge' (www.givingpledge.org) initiative, started a reverse movement – he has ‘un-named’ it, become more dynamic donors. which directly asks other philanthropists to make an open requesting it be known as the Museum of Contemporary commitment to give at least 50% of their wealth to Art. It’s a masterpiece in self-effacement, and a charity. It has certainly put philanthropy in the headlines monument to the hush that surrounds giving. Or perhaps and set blogs alight with commentary, as well as started a it is Saatchi’s way of making a genuine gift to the nation. tsunami of re-examination on the best way to ‘do’ It’s true to say philanthropists do not like talking about philanthropy. their giving, or even discussing the issue with their At the time of writing four families had agreed to advisors. Philanthropy is a taboo topic. announce their pledge – real estate and construction Independent philanthropy advisor and author of Why Eli Broad, venture capitalist John Doerr, media Rich People Give Theresa Lloyd understands the need for entrepreneur Gerry Lenfest and former Cisco Systems anonymity and says this may in part be due to a cultural chairman John Morgridge. perception of philanthropists who are regarded by many non-philanthropists with suspicion. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 16

Buffett said the pledge is "inspired by the example set by Roberta d’Eustachio, the initiative’s chief of staff, speaking millions of Americans who give generously (and often at on the impetus for the website, says, ‘For one thing, that great personal sacrifice) to make the world a better place”. old but deep-seated notion that “Brits don't talk about their money or their giving…‘ was begging to be crushed. In fact, Will it make a difference? "It would easily double or triple it seemed to us that this notion was already dead, but the amount of philanthropy in America," said Melissa people were still mouthing the words despite the culture Berman, president of Rockefeller Philanthropy Advisors, a moving on. The site chronicles this culture shift so that non-profit organisation that has advised the Bill & Melinda others in Britain will see the importance of discussing Gates Foundation on The Giving Pledge initiative. openly what they care about when they give.” The Charities Aid Foundation (CAF) estimates a figure of Philanthropy UK also provides a voice for philanthropists £60bn if the pledge was taken up by the UK’s billionaire through its My Philanthropic Journey column (see page philanthropists. 39) in which philanthropists share their experience of "If we would be able to get this influx for philanthropy giving. And case studies such as those in the Coutts from billionaires, it would inspire other Americans," Million Pound Donors report are also a platform for big Berman told Bloomberg News at the time of the launch. givers to share their experience of giving. "And then we could really change what the world is like." The role donors play in promoting philanthropy is But it’s not just the monetary value the pledge might increasingly a topic of focus. A 2004 study unleash that’s important – harnessing the power of role 14, initiated by models to engage others in conversation is perhaps eventhe Bertelsmann Stiftung Foundation and a consortium of more valuable. other organisations, explores the role of ‘donor leaders’ - role models, advocates, conveners, mentors, and standard- Bill Gates is using his influence as a ‘donor The Ambassadors for Philanthropy website setters – in promoting philanthropy. leader’ to help promote philanthropy. (www.ambassadorforphilanthropy.com), created by philanthropist Dame Stephanie Shirley, the world’s first “Active, visible leadership from well-known, well-respected ambassador for philanthropy, centres on the same idea, individuals can play an important role in encouraging and gives philanthropists an unedited voice. Among greater giving,” it says. “Particularly effective appear to philanthropists who have videocast on the website are be ‘donor leaders’ – donors who provide visible role models Fred Mulder, Alec Reed, Stefanos Stelio, Marcelle Spellerfor other potential donors. From global donors on the and Matthew Bowcock. international stage to local leaders who champion important projects in a particular community, it is clear

14 Promoting Philanthropy: Global Challenges and Approaches. Paula D. Johnson, Stephen P. Johnson and Andrew Kingman. December 2004, International Network on Strategic Philanthropy (INSP) www.insp.efc.be. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 17

that such leaders can be both inspiration and models for those with an inclination to give. So-called ‘donor leaders’ their Passionate 10 Percent™ will be better positioned to can do much to promote philanthropy awareness, build trust, win loyalty and drive innovation and impact.” knowledge, and engagement.” “Sometimes donors feel they can’t ‘win’; if they allow their Kriegel identifies a ‘Passionate 10 Percent™’ of an The paper encourages donors to be open and transparent organisation’s supporters who should be “authentically in their giving. “Such openness affirms the value of social name to be publicised they are engaged and empowered” then they will be “better investing, demonstrates the impact of giving, and attracts berated for seeking publicity and positioned to build trust, win loyalty and drive innovation the attention of other potential donors and the media,” and impact,” she says. it says. acclaim, and of course if they The Gates/Buffett ‘Giving Pledge’ is a textbook example. We know high-profile role models can inspire. Bill Gates give anonymously they may The initiative kicked off with a meeting in New York in and George Soros have helped spawn a new generation be thought to be mean.” May last year with the idea to assemble a group of of young donors in the United States. It is also said that billionaire philanthropists to discuss strategies and ’s creation of the UN Foundation directly encourage giving, hosted by David Rockefeller and influenced Bill Gates. included George Soros, Oprah Winfrey and Michael However, Craig Lefebvre of socialShifting, Sarasota, in entrepreneurial philanthropists are particularly Bloomberg. Those who take the pledge are invited to pick Florida, an expert on use of design and marketing highlighted as those wanting to take more of an active the causes that they fund and they will be invited to principles for social change, says celebrity or high profile role in their chosen projects. But organisations can share their views on the Giving Pledge website. donors are not necessarily the most powerful role models find it difficult to let them in. Lloyd agrees donors need to be included. “It’s clear that in encouraging non-donors to give. Mirm Kriegel, director of philanthropy and social people need to feel that they are making a difference, that “I think Bono and high profile 'givers' are great enterprise of BBMG, a US branding and integrated they can learn and be involved. In the US people spokespeople to gain 'mainstream attention’, but if I marketing firm, in her paper commonly give to organisations on whose boards they sit. But this is less the case in the UK. Of course this wanted to influence high wealth individuals to give 15 says cultivating single involvement should not extend to influencing the (more), I'd look for people more like them. donors to build a community of passionate champions organisation’s overall strategic direction and its values, requires organisations to invite them in, engaging them “The wealthy like to associate with people they want to be but there is an expectation that if you give money you will actively in decision making. “It means relinquishing top- like – so getting people who do give to talk more about why at least be asked for your views. I think that an important down control and inviting them in to shape the they do and be more visible is important. Universities are role of a fundraiser is to facilitate donors’ overall conversation. When organisations create opportunities for very good at tapping into their alumni,” he says. engagement, and to ensure that those who deliver the engagement—including platforms of expression that show mission are involved in this process.” Donors are more than money providers – they have identification and belonging—donors and supporters can skills and experience to donate to their causes and share the benefits of their actions with others. Brands that The BBMG study revealed another major finding around open their doors to authentically engage and empower the power engaged donors can bear on others.

15 From Legacy to Leadership: Is Philanthropy ready for the New Consumer? Mirm Kriegel, Director of Philanthropy and at BBMG Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 18

‘Enlighteneds’ – the 10% of Americans most driven by donors acknowledges this. Founder Fred Mulder, says the their values when making decisions – are three times events were inspired by his own experience as a donor. more likely to be influencers who shape the conversations Mulder found giving an isolated experience, and values and behaviour of the other 90%. They’re three times more the shared intelligence and fun that comes from working likely to talk positively (and negatively) about a brand to as part of a group. “I had a couple of bad experiences early their friends and family, and to help create content and on in my giving career and I realised that I would be in a spread the word. much better position if I had a group of people that I could check in with.” “In short, they’ll do your work for you – if you’re in their favour,” says Kriegel. There is general agreement then that philanthropists have an important role to play in promoting philanthropy We said at the outset of the article that philanthropists through their powerful networks and the positions they are shy about their giving for many reasons – but that hold. However, if philanthropists are to put their mouths does not means they are unwilling to talk. Confidential where there money is, there needs to be more openness networks and events, such as those run by Coutts, from philanthropists and those who seek to engage them. Barclays Wealth and workshops run by The Institute for Organisations need to fling open their doors and Philanthropy among others, that allow donors to meet, genuinely invite in donors to take ‘a seat at the table’ – talk, inspire and educate are the kind of safe havens more donors need a voice within, if they are to use it with out. donors require, according to New Philanthropy Capital’s The Buffett/Gates Giving Pledge is a fine example, paper The Business of Philanthropy. inviting those who take the pledge to share their ideas These events are important for another reason – they and shape the future of the project at regular ‘givers’ provide for an often overlooked aspect of philanthropy, dinners’. namely pleasure. Few donors are purely altruistic and If taboos are to be broken around philanthropy, more they want to enjoy their giving, both the reward of making Media mogul Ted Turner’s creation of the philanthropists need to overcome their shyness and speak a difference and the pleasure in the process of doing it. UN Foundation is said to have directly up – again ‘The Giving Pledge’ initiative may help by influenced Bill Gates. The Funding Network’s (TFN) pioneering social giving offering a banner under which philanthropists can evenings, described as the ‘Dragon’s Den’ of charities and mobilise together and march towards a tipping point.

“Philanthropy is commendable, but it must not cause the philanthropist to overlook the circumstances of economic injustice which make philanthropy necessary”. Martin Luther King, Jr, civil-rights leader. 1929-1968 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 19

Matched funding, championed in the UK by philanthropist Alec Reed through his foundation website The Big Give, is raising millions in minutes. Its 2009 event outstripped its £6m target, raising £8.5m © Philanthropy UK / Lisa Barnard.

The role of innovation

Philanthropic organisations, foundations A paper published by the Giving Campaign (July 2002)16 The Big Give (though pioneered by the UK government and individuals have taken a lead in states that 40% of new funding in the US was the result with its matched funding scheme for universities), it of innovative giving vehicles. raised £2m for more than 200 charities in just 45 minutes catalysing giving, pushing the boundaries in 2008, picking up the Third Sector Excellence Award for In the last few years we have seen an explosion of new Innovation. Its 2009 event outstripped its £6m target, of philanthropy to attract new donors ways to give in the UK. Matched funding, social raising £8.5m. through innovative products, services enterprise, , social impact bonds, impact investing, donor advised funds, giving circles and It has announced a £20m target for its 2010 Christmas and giving vehicles, with notable success. online giving vehicles are just some of the new Challenge Fund and the first confirmed sponsor is Arts & entrepreneurial models being embraced by donors. Business which has invested £350,000 as a catalyst fund with the aim of raising £3m for arts organisations. Oxford The innovation is a response to new demands from University’s matched funding appeal raised $100m (£66m) donors. Andrew Haigh, a managing partner at Coutts & in a year and the national disability charity Scope has just Co which has just announced funding for five subsidised launched a venture philanthropy investment model which places for social entrepreneurs on the Cranfield School of combines donations, tax breaks, soft loans, matched Management’s Business Growth and Development funding and commercial loans so that each £1,750 donated Programme (BGP), says, “We chose to support social will create a value to the charity of £18,000. enterprise because we work with some 20,000 mainstream entrepreneurs and they’re more interested in social Though there is an absence of robust research, there is enterprise than in traditional charitable giving. They don’t anecdotal evidence that innovation and neater packaging like sitting in rooms looking at grant applications and of products – in short better product marketing – attracts then simply signing cheques.” new donors. Matched funding is an alternative to cheque-writing that Tris Lumley, head of strategy at New Philanthropy is raising millions in minutes. Championed in the UK by Capital, hesitates to use the word ‘commoditisation’ in philanthropist Alec Reed through his foundation website relation to philanthropy but says “philanthropists and

16The future of giving?, (July 2002) Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 20

funders are demanding more ‘off the shelf products’, that Entrepreneurial philanthropists wanting alternatives to show a clear return on investment.” cheque-writing, are driving innovation in the philanthropic market place – impact investing, matched Joe Saxton, of non-profit research consultancy funding and venture philanthropy are some of the new, nfpSynergy, adds, “Productising philanthropy is always measurable and increasingly acceptable ways to ‘do’ going to help people. The more that we can package giving philanthropy. The hope is they may harness philanthropy so that people know that makes them a generous person as a powerhouse for social change. the better. That's why the best fundraisers are very transparent about what gift buys what naming rights or public praise. We are poor at productising in the UK while the Americans are very good.” Saxton suggests a radical idea for the UK; a ‘pizza menu’ approach to philanthropy naming, “I’d like to see a list of naming opportunities, arranged by value, allowing philanthropists to more easily choose what they could support.” As David Puttnam's recent outburst against 'tacky' naming opportunities shows, it wouldn't be to everyone's taste, however time is one of the major ‘costs’ of philanthropy – and repackaging giving to provide more ‘off the peg’ solutions alongside a traditional bespoke approach could suit some, says Lumley.

“Productising philanthropy is always going to help people. The more that we can package giving so that people know that makes them a generous person the better,” says Joe Saxton, of non-profit research consultancy nfpSynergy.

“My theme for philanthropy is the same approach I used with technology: to find a need and fill it.” An Wang, Chinese born American computer engineer and inventor, 1920-1990 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 21

Remember A Charity undertook an integrated marketing campaign ‘to normalise legacy giving’ using humour as a novel way to approach a difficult subject and engage donors (see case study on page 33 ).

The role of marketing

Imagine an advertising campaign that But could the wealthy be encouraged to give on the back Many countries have already experimented with generic would increase effective philanthropic of a generic giving campaign? campaigns including the UK. The Giving Campaign (2001-2004) sought to encourage a broad culture of giving For some, it’s a notion too far. giving tenfold by inspiring non-donors and to increase the number of donors and the amount to give away their wealth. Of course Founder of non-profit research consultancy nfpSynergy’s given in the UK. The campaign targeted specific audiences, Joe Saxton says, “The idea that you can promote giving including the wealthy and their advisors, employees and silver bullets don’t exist in through a campaign to give more seems to me ridiculous. employers, and young people. Multiple media channels philanthropy, nor in marketing. If you want people to use more Persil you don’t run a promoted the use of a new package of tax incentives for campaign to promote more washing of clothes.” charitable giving. While the campaign did not meet all of its targets, it showed impressive gains; notably, payroll Emma Turner, head of client philanthropy at Barclays giving increased from £55m in 2001 to £86m in 2004. Wealth, says,“People get very exercised over the fact that not all wealthy people automatically give, but it’s not just Marketing has long time been a part of promoting about wealth. There are other factors that have to be behaviour change. Social marketing pioneer Philip Kotler considered such as where you are in your life and what caused a storm when he published his seminal article 17 your current commitments are and then likely to be in the in future – it’s all relative. We should also remember that justThe Journal of Marketing in 1971 showing that behaviour as some people don’t exercise every day or eat carrots, could be changed by applying marketing strategies and philanthropy isn’t for everyone. psychological theories to promoting social change. Writing 30 years on in Social Marketing Quarterly he says, “Even There are people who give, people who don’t and people inthe marketing profession thought we had gone too far.” the middle who might be open to giving if they had some help getting on their journey.” Explaining the concept he says, “Most social groups espoused either economic or political activity as the underpinning of their social efforts.”

17Social Marketing; An approach to planned social change, The Journal of Marketing 1971, by Philip Kotler Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 22 ?

“Social marketing included this but added the importance A Central Office of Information (COI) paper of deeply researching the target market’s attitudes and Communications and Behaviour Change, shows through behaviour as well as developing strong communication case studies that communications can perform a range of aligned with the target market’s mindset,” says Kotler. different functions, from reframing an issue, to promoting normalisation (See Remember A Charity case study, page He accepts the application of commercial ideas and 33), to building up people’s belief and confidence in their methods to promote social goals is seen by many as own ability to change. another example of ‘business’s lack of taste and self- restraint’ but adds “the application of the logic of It says, “Understanding behaviour and its influences will marketing to social goals is a natural development and on Choice architecture enable us to harness the most efficient and effective the whole a promising one. The idea will not disappear by communications channels. The spread of new technologies ignoring it or rallying against it.” Cass Sunstein and Richard Thaler in Nudge: Improving Decisions About and the proliferation of content and communications Health, Wealth and Happiness use the term ‘choice architecture’ to channels mean that we have more tools at our disposal Kotler was discussing social marketing Mark 1.0 (paper). describe how decisions can be influenced by the way in which they are than ever before. It also means that we need to look at We now have social marketing 2.0 (interactive) and even framed. This concept is particularly relevant to communications and communications in new ways, alongside the factors that 3.0 (intelligent web) which allows donors and those who central to the aims of many communications strategies, suggesting as it influence the behaviour we are seeking to change.” support them to network, interact and engage with other does that the way choices are framed can make them more effective. key players. And it points to ‘earned opportunities’ in the form of trusted experts, such as family, friends and social media Gavin Sheppard, director of marketing and communications contacts, as an important resource. “People look to those at The Media Trust (www.mediatrust.org), which works to around them to guide their behaviour and support them give communities a voice through the use of media, Sheppard stresses such a campaign would have to be through change. For communications, this area has believes there is scope for a generic campaign to engender targeted at everyone, not just the wealthy. traditionally been the preserve of PR. However, the internet a culture of more giving. He says, “We have to challenge creates powerful new opportunities, including blogs and convention in an age of ‘disruptive marketing’. He feels charities should be less ‘brand proud’ and user-generated content, which can be effective channels for concentrate more on bringing together the donor and the “Marketing can be used to set the stage and create the facilitating social proof and peer group support,” it says. beneficiary to have their own conversations. “We need to context to make people more receptive to giving. It’s a slow make them more visible to each other and show donors Social marketing provides the means to hold burn and you can’t expect to change attitudes through a how they can make a difference, while empowering them conversations, exchange knowledge, build relationships, quick one-off national campaign. But by using the many to take part. Telling the story is vital and it is much and provide help, support and advice. Using it to ‘light powerful stories and the voice of the benefactors within easier and cheaper to do so today using technologies such many bonfires rather than looking for the one silver bullet’ campaigns, by providing moving case studies, and as video, photography and online and mobile technology. should be the aim says Stuart Sullivan Martin, chief employing the many marketing mechanisms now I believe the third sector leads the way in the use of new strategy officer of MEC Global, when speaking on available, I believe marketing can help to shift attitudes media. But we have to get even better at using the communication planning at last November’s launch of the and make giving more likely.” channels open to us.” COI paper. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 23

But a word of caution; popularising philanthropy by Though the campaign was not without its detractors who targeting it too widely or selling it too cheaply may make felt it made a sweeping claim that recklessly over- it less attractive to the wealthy, says Dr Eleanor Shaw, promised by perporting that it coud end child cruelty. marketing reader at Strathclyde University, part of the The NSPCC’s head Andrew Flanagan admitted in a Daily Centre for Charitable Giving and Philanthropy (CGAP). Telegraph article last year that “the drive failed in She identifies a philanthropic ‘Burberry effect’: the advancing towards the goal of ending child cruelty in exclusive fashion brand was shunned by the wealthy terms of the expectations at the beginning”. when it became popular among other social classes. Adam Rothwell of The Intelligent Giving Blog said in Veteran fundraiser Ken Burnett also sounds a note of response to the admission, “Promising the earth may caution in using marketing to connect with donors. He recruit armies of donors in the short term, but it also believes it has not helped the donor-charity relationship. inflates expectations of what charities can deliver, and “Looking back, I feel it was a mistake for fundraising to go encourages other organisations to make equally unrealistic down the marketing route. Charities have lost the ability claims – like when Oxfam recently claimed to be able to to connect deeply with donors who are under siege from a deliver utopia on earth.” constant stream of messaging that, with a few notable But leading fundraiser Giles Pegram, who as NSPCC exceptions, is very much alike. Charity marketing has appeals director grew the charity’s income from donors become too slick, too professional and the messages have and supporters from £3m to £145m and was instrumental lost their authenticity. As a result relationships with in bringing the FULL STOP campaign into being, raising donors are too shallow and the rates of churn are £250m to kick-start it, says, “A campaign must be enormous and unsustainable,” he says. ambitious. I believe fundraisers have a responsibility to We have seen how today’s media might provide the means encourage their organisations to be aspirational in their to execute a slow burn campaign, but what of the message? missions and objectives, and not to be constrained by the call to US billionaires to pledge to give away 50% of limitations of incremental fundraising. Fundraisers “Aim big”, is one well-supported opinion on how to engage their wealth. change the world!,” he says. donors. Burnett highlights the success of the NSPCC’s What could help it succeed is social marketing. There is a ‘FULL STOP’ campaign which he says connected with donors So could a generic ‘Give more’ campaign work? With social need to keep the conversation going and this will happen because of its ambitious aim to ‘end cruelty’ to children. marketing’s new digital sophistication, its scope to engage through ‘word of mouth’ channels, both online and off. rather than interrupt its audience, its ability to tell Among its achievements was to increase the amount of Already the subject of pundit chat in blogs, leader stories compellingly and reach donors where they are, it public support amongst adults – in 2009 more than 80% columns and forums, ‘The Giving Pledge’ has put may well have the means. of adults regularly told them that ending cruelty to philanthropy in the spotlight and it will be interesting to children is one of their top causes – an increase of 65% The Buffett/Gates ‘Giving Pledge’ is as close as we have see whether contemporary marketing strategies can help from the launch of FULL STOP in 1999. come to such a campaign and it is aspirational with its sell the idea. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 24

“To give away money is an easy matter and in any man’s power. But to decide to whom to give it, and how large, and when, and for what purpose and how, is neither in every man's power nor an easy matter.” Aristotle

What is a philanthropist?

The first rule of effective communication The literal definition of philanthropy is a ‘love of However, other is ‘know your audience’. Only then can mankind’ – philo meaning 'love of' and anthropos research paints a meaning 'man'. different picture. A newly- you communicate effectively with them. published study from the US, A more contemporary understanding of philanthropy is debunks two fundamental ideas If marketers are to successfully that it relates to highly engaged giving by very wealthy about philanthropists – that their giving motivations are individuals, families and foundations to meet unmet communicate with philanthropists they defined by their wealth and that they are focussed on social need. But in a world where technology can pull evaluation and measures, above other considerations. need to know who they are talking to. So together millions of donors to give philanthropic-sized how to define ‘philanthropist’? sums of money and people donate time and skills in lieu The Money For Good report from Hope Consulting of money, ‘philanthropists’ are increasingly hard to define. (www.hopeconsulting.us), underwritten by the Hewlett and Rockefeller Foundations and a number of other well- And one philanthropist becomes many kinds of known organisations, was motivated by a wish to seek the philanthropist as he or she travels their giving journey, ‘voice of the customer’ for charitable giving and impact becoming more engaged, knowledgeable and ambitious investing. along the way. It identifies six types of donors based on their motivations The thing we do know about philanthropists is they share for giving and found motivations varied little by gender, a common interest in giving, they want to make a age, or income level, suggesting that fundraisers ought to difference and are inspired to do so for myriad reasons tailor their appeals to fit a donor’s reasons for giving (see Why the wealthy give and why they don’t, page 8). rather than demographics. The impulse to give is often an emotional and not “It’s a different approach than thinking high-income necessarily rational decision. However, once donors have people are very different, and we need to appeal to them in decided to give, they may become increasingly interested different ways,” says Hope Neighbor, a founding partner to know how their money is being spent and whether it is at Hope Consulting. having an impact. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 25

Dr Eleanor Shaw, of Strathclyde Business School, part Craig Lefebvre of socialShifting, Sarasota, “It’s a different approach than of the Centre for Charitable Giving and Philanthropy in Florida, an expert on use of design and marketing (CGAP), says in her paper18, “Giving and philanthropy principles for social change, says, “High net wealth thinking high-income people are are influenced by gender, occupation, income bracket and philanthropy, as distinct from philanthropy among the location as well as life experiences and values. Thought affluent, is not just about giving – it is as much about very different, and we need to about like this, it is clear that people donate for various prestige, power and ego as doing good and happens in reasons, many not associated with or affected by how powerful social networks. Philanthropy is an aspirationalappeal to them in different ways.” much money they have.” pursuit and involves a lot of psychology. And it includes recognition and celebration,” he adds. Lee Jackson, third sector marketing expert of integrated creative agency The Team, makes another important Perhaps research can help us understand more about the point about defining philanthropists by how much they motivations for philanthropy and the Money for Good give. “The term ‘major donor’ is an organisational label report has shed interesting new light. that charities give to high value donors and is unlikely to But isn’t it more helpful to think of philanthropists first mean much to the individual. The charities with and foremost as passionate, innovative and creative successful high value programmes focus on the individual people with many interests – among them giving? motivations of each potential philanthropist, rather than a generic approach to all.” CAF’s head of marketing Sean Kelly supports the holistic view, “Donors respond much better when fundraisers and charities ‘get them’ as people. There needs to be much more of an appreciation of giving as a part of an holistic life by those trying to appeal to them.” If marketers and fundraisers remember to see philanthropists as people rather than walking wallets, they won’t go far wrong.

18 ‘Giving, philanthropy, recession and the future’, Dr Eleanor Shaw, University of Strathclyde, part of the Centre for Charitable Giving and Philanthropy (CGAP) Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 26

iHobo is a controversial awareness raising tool from Depaul UK that highlights the issue of homelessness through a phone application

The application of technology

There’s an app for just about everything, In the last edition of the Philanthropy UK newsletter 400,000 downloads in its first few weeks. It was the No 1 including philanthropy. Organisations ‘Digital for donors’ we reported on a soon-to-be-launched free download; and you can preview the app and a special GetGiving application offering a low-friction way for short film on itwww.ihobo.org.uk. at are applying digital technology in ever donors to make micro donations on Apple iPhone, In the application, the homeless young person wears a more sophisticated and creative ways to Blackberry or Windows Mobile to selected charities in seconds, allowing beneficiaries to collect Gift Aid more hoodie, takes drugs and throws litter and has created engage donors in playful processes with a easily. controversy around such stereotyping of homeless people. Over three days iHobo is the iPhone user’s responsibility serious purpose. And new philanthropic apps are starting to appear with with every decision made – such as offering food, money the aim of promoting giving, raising awareness of causes or emotional support – impacting on his life. It uses and engaging donors more deeply through play. Apple’s most recent ‘Push Notification’ technology to send A controversially-named free application iHobo launched alerts to the user when iHobo needs help. Once the by Depaul UK (www.depauluk.org) in May 2010 aims to application cycle is complete it makes the point that challenge perceptions surrounding homelessness and homeless people are in fact not hobos and the user is engage new donors. invited to make a donation directly to Depaul UK, so far more than £46,000. Created pro bono by Publicis, the app, the first ever to feature interactive live action video footage, allows users Through it the charity is looking to attract a new to download a virtual homeless person on to the user’s generation of young, affluent donors to continue its work. iPhone and effectively demonstrates in real time the Paul Marriot, CEO of Depaul UK, says: “Homeless young complexity of homelessness; lack of shelter, food and people are often stereotyped and looked down upon. When money, emotional distress, isolation, drug use, crime and they sleep rough, they are highly vulnerable and face very physical and mental abuse. real risks. But they are just like any other young person and, with the right support, they can be back on their feet The app shot to the top of the iTunes download chart and fulfil their undoubted potential. By creating this app within a week of launch and had clocked up more than we aim to dispel negative stereotypes of young homeless Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 27

people and raise awareness of the reasons that young Another app from 21/64 (www.2164.net), part of Andrea people become homeless and the emotions that they feel. and Charles Bronfman , aims to help We wanted to create an app that would stand out and philanthropists picture what they want to achieve from make people pay attention, and make people think about their giving, allowing philanthropists to consider better how they can make a difference.” ‘where the soul meets the business plan’. Depaul UK and Publicis are keen to start a debate The app is an online extension of the training, consulting around youth homelessness, government commitment, and advisory organisation’s Picture Your Legacy deck of general awareness and the solutions to these problems. 52 colourful images designed to spark discussion among funders of any generation, facilitating greater Tom Ewart and Adam Kean, joint executive creative understanding of an individual and groups’ philanthropic directors, Publicis, say, “We wanted to reach that elusive identity and aspirations. “The images help funders generation of young, affluent donors, who tend to exist in a develop language to write a mission statement, a vision world defined by their mobiles. It’s been a complicated statement, and an articulated message to funding process getting live interactive footage onto an app, but partners, grantees or family members about what they doing something that’s never been done before was never want to accomplish through their philanthropy.” going to be easy.” Images that include a dancer leaping across the stage, a Neil Simpson, Publicis London chief executive, called redwood tree or a lighthouse beacon, help guide funders iHobo “modern charity marketing” which had successfully towards articulating their legacy, be it in business, created greater awareness, engagement and return at a philanthropy, or life. “It is often difficult to write from relatively low cost. scratch a vision for what you want to accomplish in the Marriot adds, “As with all social media, as an world. Images can be helpful in stimulating the process in organisation you have no control over how that way words may not,” it says. conversation goes. Some of the talk has been very critical The Picture Your Legacy app from 21/64, part of The iPhone application is designed for users to search the of the organisation and the application. However, we know Andrea and Charles Bronfman Philanthropies, image database, tag chosen images with keywords and that many of those who have actually downloaded the aims to help philanthropists picture what they want notes, and send their choices to others for further to achieve from their giving application have become very emotionally engaged with reflection and discussion. the issue of youth homelessness. And, for an organisation with no real marketing capacity, the opportunity to raise the profile of our cause and our charity to such a wide audience is immensely valuable.” iHobo is free to download from the iPhone app store: http://www.apple.com/iphone/apps-for-phone/ Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 28

Dame Stephanie Shirley, philanthropist and the world’s first ambassador for philanthropy, heads a new steering committee working to develop and encourage the take-up of philanthropy advice services for the wealthy.

The role of advisors

Advisors are identified as key players in “Although the past decade has seen a significant increase so these advisors are a natural first port of call for clients promoting philanthropy, yet their in philanthropy in the UK, giving is still not embedded wanting help with many aspects of their lives, including into the culture of this country. We need to ensure that their giving. Indeed, many private client advisors are potential is woefully untapped for a philanthropy advice is promoted as widely as possible, already providing some assistance on giving, in the form number of reasons. These issues are with the highest standards of best practice, so that wealthy of tax advice and structuring of foundations or trusts. individuals will give more and think more about the “The private client industry is therefore a crucial part of being addressed by a newly-convened UK impact of that giving.” the market for philanthropy advice. Private client advisors steering committee that is working on a Dame Stephanie Shirley, philanthropist and the world’s have the best access to donors; they can help clients plan to give advisors the fire-power to first ambassador for philanthropy, makes the call in her navigate the most appropriate options; and they can build role as chair of a newly-convened philanthropy advice demand for advice from those who have not thought about engage with donors and better serve steering group working to develop and encourage the the benefits of philanthropy. If this industry does not work their needs. take-up of philanthropy advice services for wealthy as well as it might, the philanthropy market will not thrive.” individuals. It comprises representatives from over 30 Dr Eleanor Shaw, reader in marketing at Strathclyde private client advisory and specialist philanthropy University, part of the Centre for Charitable Giving and advisory organisations. Philanthropy (CGAP), agrees, “Advisors are the It’s agreed by most involved in promoting philanthropy gatekeepers of knowledge and key influencers and it is advice that client advisors have a vital role to play. imperative they are well-versed and knowledgeable about the services, tools and information available.” In its paper, The Business of Philanthropy, which sets out a plan to develop the full potential of the philanthropy Research advisory market, non-profit think tank New Philanthropy 19 shows there is a pent-up demand for good Capital, says, “Most wealthy individuals have regular advice about philanthropy. Yet, the NPC report says, contact with a private banker, an accountant or a lawyer, “Not enough advisors are proactively offering philanthropy services to their clients. What is more, where advice is

19Advice needed, Philanthropy amongst ultra high net worth individuals and family offices in Europe, New Philanthropy Capital, 2007, http://www.scorpiopartnership.com/uploads/pdfs/2007%20Scorpio%20Partnership%20-%20Philanthropy%20summary%20with%20NPC.pdf Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 29

offered, the quality is at times questionable. As the head of making some donors reluctant to discuss giving, and one private bank told us: ‘Our bankers know their stuff, personal philanthropy is still a private and even taboo but it’s amateur time when it comes to philanthropy subject in any case. Some donors do not care enough discussions’.” about the impact of their giving, and many of those who do care about impact are not aware that advice is There are a number of reasons. available. Others are unclear of the value of philanthropy On the supply side, many private client advisors do not advice. know enough about the sector, and others are unwilling to NPC head of strategy Tris Lumley says, “Giving away share information about best practice. Many see Tris Lumley and Plum Lomax of charity think tank and consultancy money in a way that aligns with a donor’s ambitions and philanthropy as a ‘taboo’ subject and are too embarrassed NPC have set out a plan to develop the full potential of the philanthropy achieves the greatest impact is a very difficult thing to do, to raise it with their clients. Another barrier is the advisory market in a paper The Business of Philanthropy yet when we ask donors if they want help the answer is striking lack of innovation in products and services often ‘no’. They do not necessarily perceive a problem – a offered to philanthropists in the UK, though this is gap between the impact they achieve on their own and how starting to change (see Promoting philanthropy – the role advisors have worked out how to do it well. Those who are they can greatly increase that with good advice, while of innovation). supporting their clients’ giving are beginning to reap the advisors are not clear on how offering philanthropy advice NPC believes by building the supply of excellent benefits, increasing their revenue and deepening client can benefit their own . From both a supply and philanthropy advice, demand for it will grow. Its CEO relationship.” demand perspective what we need to do is to ‘build the Martin Brookes cites a range of examples, including 16th burning platform’; and show how staying where we are is The paper also calls for the professionalisation of the century France, where Catherine de Medici introduced not an option, We need to force change around these areas philanthropy advice market, with the aim of helping to the fork to the French court after starting to use it to eat and shift the mindset of donors and client advisors on build the trust and confidence of donors in using services. her food. Others soon imitated the queen and stopped this issue.” eating with their fingers. A more modern success for Paul Knox, head of UK wealth advisory at JP Morgan, a The steering group, which embodies the findings of The supply-side economics would be Apple’s marketing of the member of the steering committee, says, “We are seeing a Business of Philanthropy, paper, identifies four specific iPhone. burgeoning market for philanthropy advice and there is a issues which if addressed could, it believes create a pent-up demand for people to give more effectively. At the “History provides plenty of examples of supply-led ‘tipping point’ in philanthropy advice, namely: moment, the philanthropy advisor market is unregulated, innovations and I don’t see why philanthropy should be and anyone can call themselves a ‘philanthropy advisor’ different,” says Brookes. without any formal training or experience. • Stating a clear case – the benefits of advice to the donor NPC’s Plum Lomax, who co-authored The Business of “We want to see a more cohesive philanthropy market Philanthropy paper, explains, “There is a fantastic • Where to go to get advice developing with a recognised qualification and a opportunity being missed by many banks, law firms and minimum standard.” • Educating wealth advisors family offices. Clients are now coming to expect their advisors to help them with their philanthropy, yet very few On the demand side, the difficult economic climate is • Ensuring these advisors understand the business case for philanthropy advice. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 30

One of the ways being considered to meet these aims is In considering the message of a marketing campaign through a marketing campaign, and a steering group sub- around philanthropy advice Jackson says ‘investing in committee is considering how best this could be done. effective philanthropy’ might be a better sell than asking donors to ‘pay for advice’. Third sector marketing expert Lee Jackson, of integrated creative communications agency The Team, which has Merrill Lynch-Capgemini’s World Wealth 2010 report, produced many campaigns for the non-profit sector, offers published at the end of June, says explicitly that some advice. “Advisors will be seen by donors as another philanthropists are increasingly seeing philanthropy as barrier between the charity and the donor and paying for an investment and incorporating their giving strategies their services will be seen as taking funds away from a into their ongoing wealth accumulation and capital- good cause. preservation plans. “They are making more investments rather than gifts and looking at their philanthropy just “Advisors therefore have to prove the value they can add to like they would look at their investment portfolio, a donor’s philanthropy. The decision for the donor has to including looking for a return on every dollar.” Philanthropy UK’s Quick Guide to Philanthropy Advisors is a be a ‘no brainer’ – they have to think ‘why wouldn’t I use directory listing many organisations in the UK and around the this service?’ Lumley agrees the language of investment may work globe that offer philanthropy advice. It aims to provide a way for well. “We need to talk to donors about investing in their “There is a need to build trust and confidence between those who want to take advice to find the organisation most suited philanthropy. Donors understand they need advice on donors and advisors and advisors will need to to their needs. It is one of many resources Philanthropy UK their investments – so why not social investments? provides to support donors in achieving their philanthropic aims. demonstrate their credibility and knowledge of Speaking the language of the donor is key to better We also provide resources to help advisors and recently launched philanthropy. It all takes time and marketing is best done communication.” Giving advice: a guide for philanthropy advisors, with The through conversations that begin with the donor’s Society of Trust and Estate Practitioners (STEP) to offer essential interests. It’s about building a relationship with the donor Barclays Wealth head of client philanthropy Emma information in one place online. first, ensuring you understand their individual needs. Turner takes a pragmatic view on how quickly these aims See www.philanthropyuk.org/Givingadviceaguideforphilanthropyadvisors Someone isn’t going to marry you after a first date – you may be achieved, despite social marketer Philip Kotler’s The step-by-step guide includes a framework for advising clients on need to get to know each other first.” belief in the power of marketing (see Role of marketing, philanthropy, case studies and key questions and answers, with page 21) “It may take a while before philanthropy advice signposts to more detailed information and other helpful resources. Jackson agrees with NPC’s view that one-to-one media becomes the norm but you cannot rush human nature. It is designed to support private client advisors of all types – channels such as direct marketing, peer-to-peer and face- Maybe the next generation will automatically accept the encompassing a wide range of individuals and firms, including to-face opportunities would work best in facilitating need and usefulness of philanthropy advice - perhaps in private bankers, wealth managers, trust and estate lawyers, relationships, while credibility and knowledge can be accountants, trust and family office managers, financial planners, part that is what we are working towards.” and family business consultants. demonstrated through channels such as blogs, forums and other social media.

“Philanthropy is entertainment with a purpose. For the consumer, giving online is all about emotion – that means the non-profit's site needs to offer engaging stories, compelling artwork, and powerful viral marketing tools.” Harry Gruber, online entrepreneur and CEO of non-profit software provider Kintera Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 31

Dr Felicity von Peters, managing partner of Active Philathropy

Case study: Designing philanthropy

Dr Felicity von Peters of Berlin-based “The unprecedented amount of wealth which has To work on these questions, Active Philanthropy Active Philanthropy reveals the thinking accumulated in Europe in the last 50 years has also approached the global design and innovation consultancy contributed to a growing interest in philanthropy and IDEO. The aim was not just to attract new players into behind a soon-to-be launched playful tool different ways to give back. However, the number of the field, but also to promote a culture of giving amongst box designed to help attract entrepreneurs that are active as philanthropists or donors families and individuals that emphasises the giving of in Europe is still a fraction of what it could potentially be: time, talent, treasure and trust – i.e. helps philanthropists, as well as support those according to Cap Gemini, nearly 21,000 individuals in philanthropists to contribute not just financial resources who give to share their experience and Europe have a net wealth of more than $30m. but also assets such as professional experience, contacts and passion for a cause. IDEO specialises in human- But how might we activate potential philanthropists? knowledge with peers. centred innovation and has catalysed culture changes in What do would-be donors need to embark on the journey many areas across the public, private and third sectors. of giving back? Can we find new ways of promoting With the help of IDEO, the project sought to explore what philanthropy by assisting existing philanthropists to tools could help potential philanthropists on their journey attract their peers into the field? towards engaged philanthropy and assist them in designing a personal giving strategy. These tools should be crafted in such a way that philanthropists could use them themselves as well as with their peers. To leverage the outcome of the project, Active Philanthropy brought on board shærpa, an organisation promoting engaged philanthropy and social venturing, backed by the Noaber Foundation in the Netherlands, Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 32

and another partner from Switzerland that shared the The toolbox is currently being finalised by the partners; With the help of IDEO, same vision of promoting engaged philanthropy amongst further background on the project will be available in the entrepreneurs and their families. In a series of September issue of Alliance Magazine. the project sought to collaborative workshops, the partners discussed various The potential impact of attracting entrepreneurs and explore what tools could approaches that would help to activate potential their families to becoming engaged philanthropists is philanthropists and assist them in defining the focus and evident from the fact that most innovations in the sector help potential strategy of their philanthropic investments as well as in the past decade have been driven and supported by provide benchmarks for the implementation of their philanthropists on their entrepreneurs directly or foundations set up by engagement. entrepreneurs – be it venture philanthropy, social journey towards engaged In a first phase, the IDEO team explored experiences and or calculating the SROI of an needs of the target audience from across Europe about investment. The partners of the IDEO project therefore philanthropy and assist philanthropy, regardless of whether they were just hope that the findings will help to attract a larger number them in designing a starting out on their own charitable projects or had been of entrepreneurs and their families to the sector and working in this area for years. The outcomes of these leverage the potential for strategic philanthropy this personal giving strategy. conversations were turned into prototype designs that audience has.” were tested with another group of entrepreneurs and their families. Designs were crafted along a set of Active Philanthropy www.activephilanthropy.org principles that included story-telling, a focus on the outcome and impact of investments, and tapped into both head and heart. In addition, the project focused on ways in which donors could support each other. Discussions with the target audience showed again that peer-to-peer interactions are much in demand, and could be an approach to spread engaged philanthropy all over Europe.

“A man there was, though some did count him mad, The more he cast away, the more he had.” John Bunyan, preacher and author of Pilgrim’s Progress, 1628 - 1688 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 33

Case Study: Remember A Charity, normalising legacy giving

Case Study Remember A Charity when it comes to leaving a gift to their Remember A Charity, which aims to favourite charities in their will, almost all promote legacy giving on behalf of its 140 reject the idea (only 7% leave a legacy). member organisations, ran an integrated Giving to charity is a normal activity in campaign aimed at ‘normalising’ legacy the UK, giving a legacy isn’t. Our strategy giving. It used TV, radio and press successfully challenged this and took a advertising, preceded by a one week PR major first step to reposition legacies as awareness campaign under a ‘Forget-Me- socially-acceptable, for the benefit of Not’ brand logo. charities across the UK. The TV, radio and press elements were created by global ad agency DDB. Here Objectives they present a case study to show how The objectives were two-fold: mass media channels were used to 1. Change the nation’s attitudes toward successfully reframe many people’s legacies: reducing negative perceptions attitudes to leaving gifts to charities in and making legacy-giving socially their wills. acceptable. 2. Make more people positively consider Market Background leaving a legacy and through this, drive Global ad agency DDB used an unconventional approach to engaging donors in the Remember A Charity people to visit the Remember A Charity campaign, aimed at ‘normalising’ legacy giving: instead of the traditional focus on death, they chose to Lots of good people (over 70% of adults) give website to find out more information. celebrate people’s lives by telling interesting stories of their last wishes and used humour to make the lots of money to charity every year. But topic feel light-hearted. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 34

Case Study – Remember A Charity

Strategy favourite weekend supplements. These all drove people online for more information. of three minutes on the site - over 50% longer than before The legacy marketing challenge is a well-established For those that were in the process of making a will we the campaign. one. We needed to look at the issue from a fresh created ambient media to target them in solicitors’ offices. perspective. Finally we set out to use humour to engage the audience in a difficult conversation. Research revealed three major barriers that didn’t exist for other giving methods: The Campaign The radio ad won the Classic FM Listeners’ Award. Winning Formula • Most people thought they could not afford a legacy Legacies are a heavy subject to talk to people about. because they are perceived to require huge sums of Nobody wants to think about dying. Firstly, we decided to do something brave, stepping away money. To make leaving a legacy feel normal, we needed to be from showing the usual charity imagery and using light- hearted humour. • Family always came first. Legacies were rejected byabnormal about how we approached the creative. We the majority of people who felt that such a gift chose, instead of the traditional focus on death, to The campaign worked harder than any previous would mean sacrifice for their family. celebrate people’s lives by telling interesting stories of campaign with advertising recall levels of 40%. their last wishes. • Legacies were a taboo subject, too close to death to We achieved more than 100,000 page views (an uplift think about. And we used humour to make the topic feel light-hearted. of over 33% month-on-month) with visitors spending an average of three minutes on-site – over 50% longer than Quantitative research showed us the seriousness of before the campaign. When you consider that the average this situation: 43% of UK 40+ ABC1 adults would not Target Audience value of a legacy gift is £52,500*, this is valuable time consider leaving a legacy, 45% were unsure, and only UK 40+ ABC1 adults who either have never thought spent contemplating a legacy, and the foundation for 12% were open to the idea. about legacy-giving or are unsure as to whether it is changing the face of charity in the UK. Our strategy had to appeal to a mass audience, and something they see themselves doing in the future. remove significant barriers. We did this by *Legacy Foresight Monitor repositioning legacies to be an approachable, simple Results option for all. Critical to this was embracing family A. Change the nation’s attitude toward legacy-giving. rather than trying to compete with it. 40% of people in our tracking survey thought the advertising made them think they personally could leave a gift in their will. Media Strategy 20% said that since seeing the campaign they are more We used broadcast media to get the topic of legacy- likely to leave a gift to charity in their will. If only 1% of giving out in the open instantly making it feel more them subsequently leave a legacy, it would mean an extra popular, acceptable, and worthy of consideration. £50m for UK charities. Media included 2 x 40 second TV spots on daytime TV,B. Increase traffic to the Remember A Charity website and radio commercials on Classic FM (the 40+’s We achieved over 100,000 page views (an uplift of over favourite station). And a press campaign in their 33% month-on-month) with visitors spending an average Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 35

Conclusions: Can marketing activate philanthropy?

This edition of the Philanthropy UK Among the main findings, our articles show: • While giving remains a highly personal impulse, often motivated by life-changing experiences, more mundane Quarterly explores many aspects of • Philanthropists continue to give and expect to shoulder considerations, such as low administration costs and greater responsibility in a time of need - but there is a promoting philanthropy. It highlights efficiency of beneficiary organisations, continue to be belief and some research that says philanthropists key factors in who donors support. Personal taste is some interesting factors around giving could do more. also powerful in influencing choice. Impact is important and sets the context for philanthropy in a • Among the barriers to giving is a feeling of financial – donors want to know the difference they make – but ‘new age’. In doing so it aims to inform insecurity among the wealthy as the markets continue new research shows they want more accessible and to fluctuate, though the insecurity is not related to meaningful evidence. Lengthy, complicated reports are those concerned with promoting amounts of money so much as how wealthy they feel. not appreciated and donors tend to find their own ways to filter information and make funding choices in lieu philanthropy to understand and better • Philanthropy is a taboo topic – particularly in the UK. of user-friendly information. connect with philanthropists. Yet, it is felt advisors and donors could be instrumental in promoting philanthropy if they were brave enough to • Philanthropists, particularly the entrepreneurial kind, talk more openly about it. Enabling advisors to broach are increasingly active and seek to solve rather than the topic with clients, who are unlikely to raise it just support; they want to use their skills and themselves, is considered an important next step in experience in making a difference. Organisations that developing the advice market. want to truly engage donors need to lower their own barriers and hand some power to their supporters. • Entrepreneurial philanthropists wanting alternatives to cheque-writing are driving innovation in the philanthropic market place – impact investing, matched funding and venture philanthropy are some of the new, measurable and increasingly acceptable ways to ‘do’ philanthropy. The hope is they may harness philanthropy as a powerhouse for social change. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 36

Can marketing help in this new the pledge and there is likely to be a way to go before the philanthropic landscape? ‘tipping point’ is reached. But it has certainly shifted the media spotlight on philanthropy and in that way might In this edition we also ask whether marketing can play a help confront some of the taboos that surround it. part in promoting philanthropy. Not everybody believes it can or should – certainly traditional marketing methods In conclusion, we’d like to suggest a campaign of our own are not considered the best approach. However marketing that aims to tackle those taboos and spark conversations has developed apace and it’s possible that social around what might work in promoting philanthropy. We marketing 3.0, with its interactive dimension, might be invite interested parties with other ideas to join in. Email the key to engaging donors and opening up conversations your feedback and ideas to [email protected] around philanthropy – vital to its promotion. ‘The Giving Pledge’, launched by Warren Buffett and Bill The campaign Gates is a campaign of its time. It fulfils many of the The campaign centres on a charity staple – a badge, criteria for success as outlined by marketers and proclaiming a pro-philanthropy statement and featuring a practitioners in the preceding articles, namely URL to the Philanthropy UK website, where those • It invites its audience to be part of the solution, asking interested can find more information about the campaign, them to help shape the campaign by sharing their the issues around promoting philanthropy, and on how to ideas. They are active players and involved not just for be a more effective philanthropist. The site offers links to their money but for their knowledge, influence and the many hundreds of organisations and networks that experience. can provide further support for people interested in exploring philanthropy. • Billionaires are invited to share their views at confidential social events where they can speak freely • The campaign is ambitious and based on a ‘big ask’ – to pledge to give away 50% of their wealth. • It makes the most of social marketing channels – there is a website, a Facebook page, and it has excited the blogosphere and other online PR channels with its story Will it work? Some believe the aspiration may remain that. At the time of writing four billionaires have taken Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 37

The rationale Problem 2 - Defining audience Problem 3 - Marketing is expensive Third Sector marketing specialist Lee Jackson says Defining ‘philanthropy’ is difficult and so understanding Marketing can be an expensive, complex and time-costly marketing is based on a simple principle: a problem and a the philanthropic demographic is tricky. What do undertaking. Campaigns are difficult to measure and ROI solution. Here we analyse the campaign in that context. philanthropists have in common? They give money to is hard to prove. Often they are not cost-effective and causes they are passionate about for many different sometimes fail. reasons. Beyond that they are individuals. Problem 1 – Philanthropy is taboo Solution: Marketing doesn’t have to be expensive. A Philanthropists are people with a wish to ‘make a campaign that uses a badge as its main tool is fairly As seen from the preceding articles, philanthropy is a difference’ and with different amounts of money available inexpensive. Of course, making it part of an integrated taboo topic; both client advisors and philanthropists are to make that happen But defining them by how much campaign, such as ours, adds some levels of complexity, not comfortable talking about it. Yet if it remains ‘in the they give is a little crude, research suggests. Targeting time and cost – though online technology is fairly cost closet’ donors, without the support of peers or advisors based on donor interests may be more fruitful. Donors say effective. The badge aims to drive people to a landing will be left in the dark as to how to do it better. There is a they want to be part of the solution they fund – they like page on the Philanthropy UK website where those call for a more ‘open philanthropy’, for philanthropists to be involved in the causes they support beyond the interested can find out more about the issues of and ‘donor leaders’ to stand up and be counted and inspiremoney they give and Barclays Wealth research shows a promoting philanthropy and their part in that, as well as others as role models, mentors and influencers. Could a move towards more active philanthropy. badge unite and mobilise philanthropists under a slogan useful links to philanthropy resources and helpful and start conversations about it? Solution: In fact this campaign is not about the badge, organisations. but the wearer. The wearer defines the slogan – not the A badge, or indeed a t-shirt or cap bearing this slogan, if Solution: I wore the badge on a tube trip through other way around. A billionaire philanthropist, a it worked as planned, would create a word of mouth London and noticed most people read it – it seems people community leader, a celebrity, or an advisor each add campaign; a powerful and inexpensive awareness raising can’t resist a badge. One person asked me about it, their own value to the badge and slogan. So rather than and influencing channel. The slogan lends itself to one-to- sparking a conversation about philanthropy. It’s not devise a campaign for a notional philanthropist – this is one, face-to-face conversations in which the wearer can scientific evidence – though our article shows many are for all philanthropists. It puts the all important ‘I’ in tell their own stories of giving – all key factors in not keen on complex, overly-long evidence of impact - but ‘philanthropy’ and allows the wearer to become an promoting philanthropy, as we have heard from the it is real evidence that a badge is a talking point and can integral part of the solution in promoting philanthropy. marketers we have interviewed. A good story has the excite interest and spark conversations. Worn in the right Philanthropists, we hear, are becoming more active, and scope to engage and inspire and excite online PR and environment and by key people, a badge bearing this isn’t a badge the ultimate symbol for activism? simple statement could help overcome the difficulty of marketing channels such as blogs, forums and websites, raising the ‘philanthropy question’, as well as become an as The Giving Pledge has. endorsement of philanthropy in influential circles.

“When wealth is centralised, the people are dispersed. When wealth is distributed, the people are brought together.” Confucius, social philosopher, 551-479 BCE Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Promoting philanthropy : page 38

Problem 4 - Philanthropy should be Will it work? We would welcome your feedback on this idea and your pleasurable own ideas to improve this campaign or create another In short that is down to you. Dare you wear a badge that one. If you’d like a badge let us know. “Philanthropy has become too cerebral,” says Felicity von openly endorses philanthropy? Are you prepared to be Peters of Berlin-based Active Philanthropy which has just part of the conversations it might provoke and point those Email:[email protected] . launched a playful toolbox to help donors and advisors interested to our website where they can find out more? support other donors in their philanthropy (LINK to How active do you wish to be? A badge, the archetypal IDEO). ‘Fun’, ‘pleasure’, ‘reward’ and ‘enjoyment’ are symbol of activism, offers a prop that allows those who important ingredients of philanthropy, as our articles believe in philanthropy to add their voice to the ‘promote show. Philanthropy is about passions, and involves the philanthropy’ campaign. heart as well as the head. Philanthropists have never As Gavin Sheppard of The Media Trust says, we need to claimed to be altruists – they expect to enjoy their giving challenge convention in an age of ‘disruption’. as they do it, along with the results of it. It may go beyond the bounds of taste for some – Philip Solution: The design of the slogan has at its centre a Kotler, the pioneer of social marketing, acknowledges ‘heart’. It has associations with the phenomenally ‘poor taste’ as a criticism of all campaigns that apply successful ‘I love New York’ campaign. New York is a marketing principles to driving culture change. But classy brand synonymous with passion, enjoyment, perhaps it’s time for tastes to change… in philanthropy pleasure and fun. In that sense there are authentic just about everything else has. associations between the two.

“If they wait until they're making a final will in their 90s, the chance of their brainpower and willpower being better than they are today is nil.” Warren Buffett urges fellow billionaires to think now about philanthropy through ‘The Giving Pledge’, born 1930. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving my philanthropic journey : page 39

My philanthropic journey

The apprentice: a philanthropist in the making

“Philanthropy is for me not just writing out a large cheque for a worthy cause. Most that give a budgeted sum to charities each year are not being philanthropic, they are corporate donors. Persons who contribute sums well within their means to appeals from their local church or old college are good citizens, not philanthropists. I am, I think, a generous person both of my time and money. The first step of the journey was giving to members of the family, helping them find a job, paying for schooling, buying something for their house, and the like. Whatever it was, it required an involvement with the family, a wish to improve their lives. Thanks there were, but I did not need it. My satisfaction was in seeing the improvement in the life of these persons and the happiness that this brought to their nearest and dearest. This generosity is now spread well beyond the close family, giving time and money to support many or just to bring happiness to a lot of people who do not expect it or have a right to it. Entrepreneur and family man, The next step in my journey extended my giving to causes ‘apprentice’ philanthropist beyond an extended circle of family and friends to Brian Fenwick-Smith with institutions with which I have close associations. I have some of his 10 grandchildren Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving my philanthropic journey : page 40

success. In my book involvement is an essential part of Brian Fenwick-Smith “Giving to my old school qualified philanthropy, and there must be a sense of mission to it. Born in Hull in 1935, and educated at Pocklington School Just giving large sums of money to an organised charity as philanthropy, I think, because I in East Yorkshire, and St John’s College, Cambridge, is usually not philanthropic unless one gets involved with Fenwick-Smith trained as a chartered accountant before initiated the study, worked on the the charity to help it in its work or fundraising or both. switching to industry. He set up his own food processing final definition and then paid for By my own definition I am just an apprentice company in Northern Germany among others before its completion.” philanthropist. I have always wanted to promote selling most in 1990 to concentrate on machinery and education, as I see this – with medicine – as the prime equipment for the pharmaceutical industry. By 2001 he way to improve this world. I applaud the Catholic Church had built this group into 31 companies spread around the for their schools in Africa, which I consider will do more to world with over 1000 employees and sales of over €170m. given what for me were large donations to universities in improve standards there than all the aid programmes. I After accepting an offer for the group, Fenwick-Smith now the UK and USA, often to help promote the sports that I also recognise that my own good education has been a manages a few small companies and some major consider to be an important part of education – mens sana foundation for my success in business. Giving to my old investments in private companies. He enjoys time with his in corpore sano. In thanks to my old school – in spite of school qualified as philanthropy, I think, because I family of four children spread around the world and 10 the incredible number of canings I received in the early initiated the study, worked on the final definition and grandchildren. years there – I was very happy to pay for a new boarding then paid for its completion. But it is very hard to extend house which we defined in a series of meetings with some this philanthropy to universities especially in the UK, consultants as the first step needed for a total update of unless you are going to give a very large sum that will the facilities. The school has been going since 1514, and I require you to identify the object and then to be involved want to ensure that it continues to attract good pupils from the start in defining and completing it. Short of that, and turn out well-educated citizens to ensure the future your university or college will chase after you, wine you generations of our country. and dine you, and then hope they will get a cheque which But since having had a successful business career and they can spend as they wish. So, with no ‘cause’ to get being much less involved in business, I have developed involved in, I decided as an avid book collector to get the ambition to become a philanthropist. Philanthropy, asinvolved in the library of my old college and have given or the name implies, means loving mankind and wanting to bought them very valuable books that they could never help make the world a better place. The philanthropist justify using their limited funds to buy. goes well beyond the generous person I above described; Now I am a potential philanthropist looking for a cause. He identifies causes where he would like to help, and to But don’t write to me with your cause – it has to be born this he devotes a lot of time and money, and not in me and become my baby.” necessarily both at the same time or to the same cause. He is professional in his charity and wants to make it a

“No man should think himself a zero, and think he can do nothing about the state of the world.” Bernard Baruch, U.S. financier and government advisor, 1870–1965 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving A broader view : page 41

Melissa A. Berman, president and CEO of Rockefeller Philanthropy Advisors.

A broader view

Letter from America: US Giving Pledge poses $600bn question

by Melissa A. Berman On 16th June, Bill and Melinda Gates – along with Certainly the most critical question is what difference Warren Buffett – publicly asked the billionaires of the US ‘The Giving Pledge’ (see www.thegivingpledge.org) will “For the members of ‘The Giving Pledge’, to pledge the majority of their wealth to philanthropy. make. There are already plenty of examples of While they have begun with US billionaires, the trio philanthropists donating the vast bulk of their wealth in being able to share ideas and inspiration hopes to expand ‘The Giving Pledge’ movement to their many cultures and eras. But the Gates-Buffett plan has will help get them onto the on-ramp for counterparts across the globe. some unique features that are worth focusing on. serious philanthropy more quickly.” Analysts immediately began to calculate what success First of all, there’s the timing. Over the past decade or so, might mean in dollar terms, with estimates as high as an awareness of and participation in philanthropy has additional $600bn (£398bn). Other commentators focused grown. A growing expectation of philanthropic instead on the culture of contributions that this call to involvement is evident in the many programmes offered action might create. And some pundits were deeply by banks and wealth managers for their clients around sceptical – questioning whether half was enough; whether the world. Opportunities to understand, experience and the money would be used well; whether most pledgers get involved in issues around the world have been had already made the commitment; whether the goal was transformed by new technologies. Meanwhile, according truly social good or only public relations. to research by Edelman Public Relations, the recent economic debacle has challenged our confidence in the All of those are fair questions, and we’ve heard our share private and public sectors – but reinforced our belief in of them at Rockefeller Philanthropy Advisors from donors, what the non-profit sector can accomplish. And solutions non-profit leaders and the media. And before we address (like social enterprise and mission investing) that blend the topic, we generally let them (and now you) know that the for-profit and non-profit have dramatically increased we’ve been advising the Gates Foundation’s philanthropic appeal. Thus, the conditions are in place for a successful partnerships team on this and other issues related to movement to galvanise those with significant resources to increasing philanthropy and its impact; we’ve also apply them to philanthropy. received grants from the Gates Foundation. Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving A broader view : page 42

Second, there’s the peer community. Less attention has That, from our perspective, is the great potential of ‘The what it means, what can be assessed, what is currently been focused on this, but ‘The Giving Pledge’ plans to hold Giving Pledge’: with broad agreement that philanthropy beyond us. And we’ll need to be clear about how regular meetings for its participants. The website will can make a substantial difference on critical issues, and philanthropy really works, how it intersects with public include statements from all those who have pledged. with the creation of a new donor community, potential funding, how large the relative capital pools are, and That’s a tremendous source of encouragement and donors can both get involved and commit serious funds when investment is a real option, not just a metaphor. knowledge sharing. As Emily Dickinson told us, “the soul more quickly. ‘The Giving Pledge’ might be the accelerant None of us can do any of that alone, and so it’s time for us selects her own society”. we need for philanthropy’s potential to be unleashed. in the philanthropic advisory world to make our own pledges to one another, and form our own peer community For the members of ‘The Giving Pledge’, being able to If that forecast holds, and “The Giving Pledge’ is to share insights and ideas. Why should billionaires have share ideas and inspiration will help get them onto the enormously successful in promoting philanthropy, what all the fun, anyway? on-ramp for serious philanthropy more quickly. Peer to does that mean for those of us who provide philanthropic peer conversations and exchanges are incredibly valuable advice and counsel ? More donors knocking on our doors? for this work. Believe it or not, many billionaires find More donors answering the door when we knock? That themselves strangers in a strange land when they wish to could well be – but while a growth in philanthropic Melissa A. Berman is president and CEO of Rockefeller embark on philanthropy that goes beyond giving to large commitment may be a necessary component for the Philanthropy Advisors. www.rockpa.org medical, educational or arts institutions. Donor resources growth of philanthropy advice, it isn’t sufficient. to help them realise their tremendous potential are far For that to happen, we’ll have to be able to demonstrate too scarce, or hard to find, we hear over and over. that we provide real value – that paying us isn’t a © 2010, Rockefeller Philanthropy Advisors, Inc. diversion of funds from the ultimate beneficiary, but rather a way to ensure that funds to go to the intended beneficiaries. First of all, we’ll have to be able to demonstrate that having a strategy makes a difference, and that it’s worth researching options to make better choices. We’ll have to be clearer than ever about impact – Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving EuroView: page 43

Dr Marta Rey is assistant professor of the School of Economics and Business of the University of A Coruña, Spain, and director of the Institute for Strategic Analysis of Foundations (INAEF).

EuroView: What does philanthropy need marketing for? Getting perceptions right on the unknown

by Dr Marta Rey Public benefit purpose-foundations, being the typical philanthropic organisation in continental Europe, have been mainly studied from two different perspectives: as Over the last decades, academic, legal entities with a special fiscal regime and/or as institutions that perform certain functions for society. At practitioner and policy interest in the the end of the day, the perceptions among researchers and philanthropic behaviours of individuals practitioners resulting from both traditional approaches have turned out to be surprisingly similar. Foundations and households on the one hand, and on are perceived as independent economic capital agents, the activities of charities and other consisting of trusteeship of charitable gifts (the anglo- common-law tradition) or a set of assets with legal philanthropic organisations on the other, personality (the Ancient Rome-origin civil-law tradition), has grown exponentially. However, the which complement or substitute welfare state arrangements, redistribute income, promote social advancement of multidisciplinary change, preserve traditions or foster innovation; among research on philanthropy has faced other ‘public good’ functions. serious obstacles in Europe, and existing This archipelago-like perception of the foundation sector has resulted in neglect of foundations as research-worthy concepts and theories explaining it are social or economic agents. Foundations, under the still strongly US-based. archipelago approach, are a marginal legal form to institutionalise economic capital, i.e. capital that is

“Plenty of people despise money, but few know how to give it away.” Francois de La Rochefoucauld, author, 1613-1680 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving EuroView: page 44

immediately and directly convertible into money. Even the paradigm the importance of ‘embeddedness’, that is best-endowed foundations in the world may have limited personal and corporate relations and networks of budgets by comparison with a regional public relations in generating trust and allowing the administration, not to mention a state-wide. There is a “This ‘unmapped archipelago’ proliferation of obligations and expectations. This form of inherent difficulty in mapping the archipelago of social capital is productive, making possible the foundations existing across continental Europe, given not situation has led to a certain extent achievement of certain ends that in its absence would not only national differences in legal and fiscal frameworks, to a standstill in foundation studies, be possible. The core of relationship marketing is the but also the fact that most EU member countries do not maintenance of value-adding, mutually profitable, long- have a central foundation register. with the exceptions of few countries term relations between organisations and the actors in its micro-environment. The group or network within which This ‘unmapped archipelago’ situation has led to a certain such as Germany, Spain and France.” there is extensive trustworthiness and extensive trust is extent to a standstill in foundation studies, with the able to accomplish much more than a comparable group exceptions of few countries such as Germany, Spain and without that trustworthiness and trust. France. The Bundesverband Deutscher Stiftungen, the Spanish Association of Foundations through the Institute Let’s take a look at some examples: the Gulbenkian for Strategic Analysis of Foundations (INAEF), and the Foundation in Portugal, the more than 70 foundations Centre Français des Fondations are leading the created by Spanish universities, and the corporate arising from this exercise is not an accurate map and we preparation of systematic directories aimed towards foundations created all over the world. The Gulbenkian still cannot answer the basic question of how many segmented analysis for the sector. Apart from the satellite Foundation is one of the biggest endowed foundations in foundations exist in Europe and what do they do but, account initiative for the nonprofit sector in general, some continental Europe. Its greater value to society, however, what is even more important over the medium term, we few courageous academics are surveying relatively small, probably lies in how effectively it leverages its are completely missing the ecosystem where the trees are non-random samples of foundations, generally selected relationships with the outstanding set of several born, develop, and die. among the largest in terms of endowment size, to thousands of former grantees and Fellows who acquired estimate the economic dimensions for each country My proposal to picture the whole foundation ecosystem new skills and capabilities with its support and cut across foundation sector. This means estimating the value to would be to utilise two deeply rooted concepts in social every intellectual in Portugal, including for example society of a wildly varied and rich forest – including not science, i.e. social capital and relationship marketing in a former Prime Minister. Most of the more than 70 public only trees, but also many bonsais – from the size and order to ultimately advance the discussion on why and and private universities existing in Spain have created characteristics of the few sequoias existing. The picture how foundations are relevant for society. Foundations foundations. The relationship between universities and Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving EuroView : page 45

university foundations enables employment programmes foundations and other organizations and also individuals.Dr Marta Rey is assistant professor of the School of for graduates, R+D+i programme contracting with firms, A sound sense of marketing understood as client Economics and Business of the University of A Coruña, volunteer programmes in less developed countries, orientation helps foundations listen to stakeholders andSpain, and director of the Institute for Strategic Analysis networking with alumni... which would not be possible understand their needs and expectations, and helps themof Foundations (INAEF). Her research interests focus on within the traditional university framework. And third, also tailor programmes and projects which really can non-profit management and marketing, civil society, many firms have created foundations as a vehicle for make an impact by helping fulfil those needs and philanthropy and the foundation sector. Dr. Rey also sits implementing their corporate responsibility strategies. expectations. A sound sense of marketing understood ason a number of boards of organisations involved in Foundations contribute to make these strategies credible. value-mediated market orientation helps foundations philanthropy and the non-profit sector across Europe and While they improve factor and demand conditions, the build trust for partners and causes of their choice. A on several editorial boards. competitive context, or related and supporting industries sound sense of marketing understood as the capacity to Dr. Rey is a Fellow of the Real Colegio Complutense at for the firm they are connected to, they also create design win-win exchanges and collaborations helps Harvard University and the Salzburg Seminar-Fulbright positive externalities benefiting other constituencies. foundations build long-term relationships with public and programme and is currently visiting fellow at The Hauser private agents who are key for social change and These and other samples that may come up to our minds Center for Non-profit Organisations at Harvard innovation. That is what relationship marketing is about. prove that foundations can become effective generators of University. Marketing can help foundations complete a map for the social capital if they successfully manage their archipelago and transform it into an understanding of the relationships with relevant stakeholders so that long-term ecosystem they are part of. And last, but not least, relationships based on trust are developed. I foster the [email protected] marketing can help foundations in their fundraising... idea that marketing should be used to its potential for but this we knew already. www.hks.harvard.edu/hauser/people/index.html managing successfully long-term relations between Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving Impact investing : page 46

If you require any further information on these stories or have a social Adam Ognall investment news item, please contact Adam Ognall, [email protected] deputy chief executive at UKSIF Impact investing

A brief round-up of developments from the social investment world By Adam Ognall, UKSIF

The beady-eyed amongst you will have noticed that this Arcubus City of London microfinance Carnegie Commission calls for new column has changed its name from ‘What’s new in social fund launched financing tools for civil society investment’ to ‘Impact investing’. This has been done to It aims to raise £1m in 2010 for microfinance in Africa In ‘Making Good Society’, the Commission of Inquiry into reflect latest thinking amongst leading players that the through donations and investments into a Social the Future of Civil Society highlights how social term ‘impact’ best describes investments whose primary Investment Bond issued by Citylife Ltd. The funds will be investment can drive civil society activity. It was chaired motive is to address a social and/or environmental channelled to a partnership of microfinance NGOs. by Geoff Mulgan and supported by Carnegie UK. challenge.’ www.arcubus.com http://www.carnegieuktrust.org.uk/publications/ making_good_society Social Investment Task Force publishes Investors’ Guide to Impact Investing final report launched Oikocredit reaches €1 bn in committed The Bond raises capital for investment in the social sector, loans and investment with financial returns to investors based on improved The guide by Bridges Ventures and the Parthenon Group social outcomes. The first issue works to reduce re- presents a system for cataloguing investment opportunities The microfinance financing institution has announced offending rates in Peterborough. The Ministry of Justice using a tradition asset allocation model. It documents 30 capital inflows in 2009 of €63 million and a growth in has agreed to make payments to investors in the event case studies to illustrate the diversity of opportunities by assets of 13%. It plans to continue paying out a 2% that re-offending is reduced below an agreed threshold. asset class, risk and investment motivation. dividend to its investors. www.socialfinance.org.uk www.bridgesventures.com www.oikocredit.org Aros Capital Partners launches social Charity Bank launches ‘PFI’ finance Good Deals 2010 Social Investment investment fund scheme for community projects Conference: 15-16 November The Altru Fund will make debt and equity investments in The pilot scheme aims to finance community projects, in a Good Deals, in its third year, has been expanded to run eight to 10 companies with a high social impact. The fund similar way to the private finance initiative for public over two days. It will bring together social entrepreneurs is aimed at charities, pension funds and private investors. sector building contracts. Charity Bank has reported that with innovative investors. its financing in 2009 grew 31% to £36m. www.aros.cap.com www.good-dealsuk.com www.charitybank.org Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving publication reviews and notices : page 47

Publication reviews and notices review by Beth Breeze, publications editor Master Your Philanthropy: a brief description of the size and shape of the charity How to maximize your strategic giving sector in Canada, on the basis that the best allocation of Nicola Elkins philanthropic resources requires an understanding of the Winnipeg, Canada: Knowledge Bureau, Sept 2009. overall philanthropic landscape. Later chapters cover a 118pp. Softback. ISBN 978-1-897526-30-9. £14.90. wide gamut of issues including tax planning, aligning www.knowledgebureau.com personal and family values with a strategic plan, undertaking research and setting achievable objectives, harnessing a family business to pursue philanthropic objectives, and running a grant-making foundation. We Brits are well used to being on the receiving end of A particularly useful chapter lists and discusses the advice from across the Atlantic Ocean on how to ‘do’ various ‘ways to give’, noting that there are now many philanthropy. However, this compact volume is not from alternative approaches available for philanthropists. our American cousins but their northern neighbours in Donors can support a charitable organisation directly or Canada. This book therefore provides an education in the set up their own foundation; they can give time and skills Canadian perspective on philanthropic issues, as well as by volunteering, as well as (or indeed instead of) giving being a useful primer for philanthropists in any part of money; they can establish a new charitable organisation the globe who want to explore some of the important or set up a social enterprise; and they can choose to trends in contemporary philanthropy and develop their operate at the cutting edge of 21st century philanthropy own plan for undertaking strategic giving. by pursuing venture philanthropy, micro-financing and socially responsible investment approaches. The book has a very straightforward format and the nine chapters follow a sensible structure for navigating key Another important chapter focuses on monitoring and issues faced by philanthropists. Each chapter begins with evaluating philanthropic impact, in order to ensure they a ‘real life’ scenario of someone facing a philanthropic are “achieving their intended impact” and “making a challenge, which is resolved with advice, tips and positive difference”. The advice in this section refers back solutions in the ensuing pages. The first chapter provides to the groundwork laid in an earlier chapter on ‘Selecting Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving publication reviews and notices : page 48

your Cause’, which counsels donors to review succession planning are said to involve starting early, At just over 100 pages long, this book cannot provide an organisations doing work in their chosen area and especially when larger and more complex philanthropic in-depth exploration of all the issues, but it is a handy support those able to demonstrate good financial strategies are in place, and striving to involve all relevant primer for people starting to think seriously about their management and proven effectiveness. Having family members: “making the effort to get their input and giving, and provides a readable insight into the current undertaken due diligence in the selection of beneficiaries, involving them in the planning process will help to foster thinking in Canadian philanthropy. tracking the progress of philanthropic investments should commitment and get family members to take then involve ensuring the recipient organisation continues responsibility for the honour of philanthropy”. Appointing to manage its finances appropriately and maintains successors to positions on the board of family foundations progress toward solving the problem it identified. and arranging for them to spend time having direct Refreshingly, this book acknowledges that measuring experiences with the charitable organisations that are philanthropic impact is no simple task and that recipients of donations are also recommended strategies, “evaluation can be hard to do”, not least because many “to ensure your legacy and wishes are not challenged from other external factors can influence outcomes for better the grave”. and worse. Inadequacies in the evidence base for The author, Nicola Elkins, concludes that thinking philanthropic giving mean that “anecdotal evidence, visits strategically about philanthropy, taking advantage of tax to services and the success stories of users will remain incentives and learning from other philanthropists and powerful influences on giving”. advisors is “the smart thing to do”, but that it will also A concluding chapter on ‘succession planning’ argues that bring greater happiness to an individual’s life. Drawing robust plans should be put in place for the transition of on research into correlations between philanthropy and both wealth and charitable intentions. This book suggests levels of satisfaction and happiness, she cites: “people who there is a high price to pay for failing to hand on family give money to charity are more likely than non-givers to values and a work ethic alongside large sums of money say they are very happy and the more people give, the as, “many children of the wealthy suffer from ‘’ – happier they get… Giving delivers direct psychological lack of ambition or aspiration brought on by a life of and physiological benefits”. wealth and privilege”. The key factors behind successful

“Conventional banks look for the rich; we look for the absolutely poor. All people are entrepreneurs, but many don't have the opportunity to find that out.” Muhammad Yunus, Grameen Bank Founder, Nobel Peace Prize winner, 2006, b.1940 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving influential reading : page 49

Influential reading: Dr Astrid Bonfield

In each newsletter, Philanthropy UK Astrid says: invites an influential person from the philanthropy sector to tell us what books “The first of the three books that still inspires me in my work today is the history book I read and re-read as a have most inspired and shaped their child People in History by R.J. Unstead. One chapter approach to philanthropy. describes the life of Elizabeth Fry and I remember being engrossed by the story of a woman who bravely defied the traditional roles for women of her class and time by going Our ‘influential reader’ in this edition into Newgate prison to work towards improving is Dr Astrid Bonfield, chief executive conditions for the women and children housed there. Her humility and quiet determination is echoed today in some of The Diana, Princess of Wales of the other inspirational prison reformers I am lucky Memorial Fund. She can be contacted enough to work with through The Diana, Princess of Wales Memorial Fund’s programme with Prison Reform at [email protected] Trust to reduce child and youth imprisonment. It reminds me that quiet words spoken to power can still be an effective strategy for creating positive change, although it is intolerable that such reform is still needed over 180 years after Elizabeth Fry’s death. My second choice is Dr Deborah Rose’s Dingo Makes Us Human: Life and land in an Australian Aboriginal Culture. It is a warm and humane book by a social anthropologist who spent time living in an Aboriginal community in the Victoria River Valley of the Northern Territory of Australia. It is one of the few ethnographies where the author evokes what it feels like to live with Astrid Bonfield Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving influential reading : page 50

another culture rather than dryly describing their our own cultural paradigms, is critical to successful My final book is Just Change by Diana Leat who cultural practice. programming. The notion of development can be reminds us that: problematic in these terms, because it sometimes implies She writes: ‘…amidst all you will learn of the many recurring themes a kind of inevitable progression of human society towards in foundations’ work; the suggestions for achieving wider ‘The small Aboriginal settlement known as Yarralin had a western democracy and . In fact our learning and sustainable change; and the lesson that sometimes to different appeal. In a broad but superficial view it looked and effectiveness can be greatly enhanced if we seek to achieve social justice, grantmaking really does mean like the setting for a documentary movie on fourth-world understand non-judgementally the value base of other manning the barricades; there is a further and simpler misery, featuring , neglect, abuse and disease. On cultures and people, be they hunter gatherers in Arnhem message at the heart of Just Change. This is that looking closer, I found aspects of Yarralin that seemed Land who value kinship and ceremony and their link to achieving impact is primarily an attitude of mind, and inexpressibly sweet to me because they reminded me so the land or like the burka wearing, gender officer who one that can be delivered through small but well chosen clearly of the shanty town near which I had lived when worked tirelessly for women I met during project visits to significant change. Thus we all may have the potential to I was a child in Wyoming. Here were the same remains Chitral in Northern Pakistan. make a difference, and it doesn’t need us to be large scale, of broken down cars with smashed out windows, car seats For the Yolngu of Gapuwiyak everything is communally or long in the philanthropic teeth to do so.’ with springs poking through serving as outdoor couches, owned and thus goods have little value. This is one reason discarded clothing, and a seeming proliferation of This quote so well encapsulates the approach of The that Aboriginal settlements are littered with broken children and animals. Here, too, were the signs of care Diana, Princess of Wales Memorial Fund as we attempt – furniture and abandoned cars. If the good itself has little which transfigure images and illuminate people: a tiny through our grantmaking, policy work and collaboration cultural value, it is simply discarded when broken. I plant carefully surrounded by wire, babies in lacy with others - to work towards systemic change. Leat found it so difficult at the beginning of my fieldwork pastel dresses.’ reminds us that we can make a difference and that we, amongst the Yolngu not to care as my clothes gradually with our enormous privileges as grantmakers, have a Her book inspired me to go to Australia and live with an disappeared from my rucksack to be worn by my adopted duty to try to do so.” Aboriginal community in Arnhem Land during my own sisters, but I got there in the end. They weren’t taking fieldwork in the 1990s. I met Deborah in Darwin just what was mine, but using what was ours and I just before travelling to Gapuwiyak, and vividly remember needed to understand the cultural norms around both her helpful, practical encouragement and her waist ownership before I could deal with it (although not length plait. necessarily like it!). I try to remind myself of this in our programming today, particularly our palliative care Social anthropology provides an excellent training for initiative in sub-Saharan Africa – do we know enough philanthropists and those who work in the foundation about the context and values of those we seek to work sector. We so often engage with groups who are ‘other’ to with to be effective as we can to improve their lives in a ourselves and it is easy to make assumptions about their way that is meaningful and lasting for them? motivations and world view. Taking time to listen and observe, in order to avoid making assumptions based on Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving publication reviews and notices : page 51 notices by Beth Breeze, Publications Editor

Wealth and the Will of God: Civil Society, Philanthropy and the A Practical Guide to International Discerning the Use of Riches in the Fate of the Commons Philanthropy Service of Ultimate Purpose Bruce R. Sievers Jonathan R. Moore Paul G. Schervish and Keith Whitaker According to the back jacket text which echoes statements According to the publisher, this book is a practical guide made by many politicians: “Among the greatest challenges addressing the issues faced by philanthropists seeking to A new book by Paul Schervish is always likely to be a facing humanity in the twenty-first century is that of engage in international charitable activities and offers development of interest to people who study and care sustaining a healthy civil society, which depends upon alternative approaches to traditional US-based about philanthropy, as he is one of the most eminent managing the tension between individual and collective foundations. A significant portion of the regulatory experts on this topic. The book, co-written with Keith interests”. This slim but ambitious volume attempts to burdens facing US private foundations derives from tax Whitaker, has an explicitly religious angle, exploring clarify the concept of ‘civil society’, provides the historical benefits available to donors under US law. A charitable some of the spiritual resources of the Christian tradition backdrop to the contemporary challenge by tracing the organisation must initially qualify and then be that can aid serious reflection on wealth and giving. Six development of civil society and philanthropy in the West, maintained under a complex regulatory regime. If some or chapters focus, in turn, on six thinkers who have written and offers an analysis of their role in solving the problems all of these tax benefits are either unavailable or not about the ultimate purposes of human life: Aristotle, faced by modern liberal democracies. Sievers argues that needed, or if the tax advantages are outweighed by the Aquinas, Ignatius, Luther, Calvin and (probably less well the first civil society was the 17th century Dutch republic burdens of regulatory compliance, foundations can be known to a UK audience), Jonathan Edwards, an 18th – an unusually Eurocentric view for a US-based established in foreign jurisdictions. Charitable activities century American preacher. The notion of ‘moral academic! This is a significant book on an important can then be operated flexibly and privately outside the biographies’ is described as a means for integrating an subject that repays careful reading. constraints of the US regulatory regime. For existing individual’s personal capacity and moral outlook in order private foundations, this book suggests strategies to ‘live well’ and achieve their own ultimate ends. As an designed to hedge against ever-increasing and intrusive endorsement on the book jacket notes, this book: “brings regulation. a philosophical and theological perspective to questions Medford, Massachusetts: Tufts University Press, 2010. about motives for and practices of giving that is little 205pp. Softback ISBN 978-1-58465-895-5. £28.50 evident in the extant contemporary literature on www.upne.com philanthropy”. Cambridge: Cambridge University Press, Nov 2009. 380pp. Hardback ISBN 13-978-0-521116411. $80. http://www.cambridge.org/us/catalogue/catalogue.asp?is bn=9780521116411 Bloomington, Indiana: Indiana University Press, May 2010. 210pp. Softback. ISBN 978-0-253-22148-3. $65. http://iupress.indiana.edu

“Once we realize that imperfect understanding is the human condition there is no shame in being wrong, only in failing to correct our mistakes.” George Soros, Hungarian born American Philanthropist and Stock Trader, b.1930 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving publication reviews and notices : page 52

Scaling up for the ‘Big Society’ How Donors Choose Charities

Martin Brookes, Tris Lumley Beth Breeze and Esther Paterson This is the first full-length report to be published by the This short report, entitled an ‘NPC Perspectives’ paper, is UK’s new Centre for Giving and Philanthropy. Based on a quick response to the issues raised by the creation of interviews with committed donors, it explores how people the new coalition government. The new government faces define charity, what they think about charitable entrenched social problems and the challenge of reducing beneficiaries, and how they choose between the tens of the budget deficit. Its ‘Big Society’ idea seems to imply a thousands of charitable organisations that seek their beguilingly simple solution: use charities to fix social support. It concludes that, despite widespread problems and at the same time reduce government assumptions that need is the primary driver of charitable borrowing. In this short but important paper, NPC argues donations, four non-needs-based factors influence giving that charities and social enterprises have an important decisions: donors’ tastes, personal experiences, perceptions role to play if this idea is to become reality. The paper alsoof charities’ competence and a desire for personal impact. suggests ways to assess evidence of impact and social benefit, and provides guidance on what to scale up and how to do it. London: Centre for Giving and Philanthropy, June 2010. 60pp. Available online at www.cgap.org.uk

New Philanthropy Capital: London, May 2010. 15pp. Free to download at http://www.philanthropycapital.org/download/default.as px?id=1112 Philanthropy UK Quarterly : Issue 41, Summer 2010 philanthropy uk:inspiring giving : page 53